The Ether Fund, managed by Toronto-based investment manager 3iQ Corp, has completed an initial public offering and is set to begin trading on the Toronto Stock Exchange (TSX).
The new fund sold 7.24 million Class A and Class F units, which yielded $76.5 million in aggregate proceeds. Class A Units will be listed under the symbol ‘QETH.U’ and initially intended to raise a minimum of $10.75 million and a maximum of $107.5 million. Class F Units will not be listed on a stock exchange but will be reclassified as Class A Units immediately upon closing the offering.
To lend support to the fund, 3iQ said it addressed the questions of pricing, custody, audit and public interest issues in a regulated investment fund. It acts as the investment and portfolio manager of the fund, while New York-based crypto exchange, Gemini Trust will fulfil the functions of the custodian of around $75 million worth of ETH held in the fund.
Gemini founder, Tyler Winklevoss elaborated just before trading began:
Huge news for Ethereans. The Ether Fund by @3iq_corp will list on the Toronto Stock Exchange ($QETH) tomorrow morning. The fund has already raised ~$75MM. All $ETH will be held by @Gemini Custody. To the moon! ?
— Tyler Winklevoss (@tyler) December 10, 2020
The exchange-traded product would provide stockholders with direct exposure to Ether value. The non-redeemable investment fund also aims to achieve capital appreciation through a long-term holding strategy. To induce more and more buyers, there is no limit on minimum purchases.
In spite of being traded on the Canadian exchange and operated by Canadian investment fund manager, 3iq Corp, the value of the investment is denominated in U.S. dollars.
Toronto-based FinTech company launched Canada’s first regulated Bitcoin investment fund earlier in April. Additionally, 3iQ manages two private investment funds: 3iQ Bitcoin Trust and 3iQ Global Cryptoasset Fund, which started as a private placement available only to accredited and institutional investors in Canada.
Earlier this year, 3iQ announced the merger of 3iQ Bitcoin Trust into The Bitcoin Fund, and are distributing class B units of the fund as qualified under the prospectus.
With the filing, the company hopes to attract retail investors to its dedicated Ethereum fund. Further, the listing would allow investors who purchase 3iQ shares in a private placement to sell their shares in the market.
