CEO says portfolio managers can take advantage of diversified fund on the TSX NAVex
If investors understand the potential of blockchain and cryptocurrency, their asset allocation should be greater than zero.
That’s the view of Frank Pye, president and CEO of 3iQ Corp, which this week celebrated its Global Cryptoasset Fund becoming the first mutual fund in the space to be listed on the TSX NAVex.
The RRSP and TFSA-eligible fund offers diversified exposure to Bitcoin, Ethereum and Litecoin, allowing investors daily liquidity. Crucially, the TSX NAVex gives portfolio managers the ability to make multiple purchases at the same time on the same ticket.
While already posted, the fund will be available for retail and institutional investors in about three weeks and Pye said 3iQ is eager to see what kind of assets come in.
He said the one-subscription process on the NAVex is a huge plus for PMs and the OM fund trades more like an equity as a result. Getting advisors access to liquidity with this structure took Pye and his team two years of negotiations and dealings with regulators. He believes his fund offers the diversification to entice previously hesitant advisors.
“If you take a look at the blockchain and crypto space, Bitcoin is very much used as a store of wealth, Litecoin will be used as a transaction cryptocurrency and Ether is used for smart contracts and secure contracts on a blockchain – three very different objectives for those three currencies.
“Any pension fund or an institution or an advisor looking for proper diversification gets all three within one portfolio.”
While a believer that everyone should have some exposure to the space, Pye said the current advice in the financial industry does not tally, although he believes that it is becoming more mainstream.
He said: “Right now, I can tell you with a high degree of certainty that 99% of the financial advice in this country for asset allocation to crypto is 0%. So, ideally, at some point in time there will be an exchange-traded listed product where non-credited investors can buy into it.”
He added: “Being first with this multiple cryptocurrency gives us a what we believe to be a lead in launching these types of products.”
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