Collaborating with world-class partners,
Coinbase and Tetra Trust, 3iQ goes live with
North America's first Staking
exchange traded products, seeking to generate additional yield and
improve performance
TORONTO, Oct. 19,
2023 /CNW/ -- 3iQ Digital Asset Management (3iQ), the
first regulated digital asset investment fund manager in
Canada, announced today that The
Ether Fund (TSX: QETH.UN, QETH.U) and the 3iQ Ether ETF
(TSX: ETHQ, ETHQ.U) (collectively, the Funds) will commence
staking ether (ETH). Through staking, the Funds
will earn rewards in the form of ETH, which will be
reflected in the net asset value (NAV) of the Funds through
accretive yield. The Ethereum network staking yield
sits around 4%. The 3iQ Ether ETF is the world's first Ether ETF
vehicle to enable staking.
To commemorate this landmark innovative milestone, 3iQ will be
waiving the management fee of the 3iQ Ether ETF until March 31st, 2024, and, effective October 20, 2023, the fund will commence trading
as the "3iQ Ether Staking ETF". The ticker symbol will remain the
same.
Building upon its proven track record and history of delivering
innovative investments of institutional quality, 3iQ achieved
another digital asset investment "first" when they announced last
June their plans to commence ETH staking in the
Funds.
Working in collaboration with industry leaders
Coinbase and Tetra Trust, 3iQ is establishing new
standards to deliver digital asset investment solutions safely,
securely and efficiently within Canada's exchange-traded product (ETP) space.
Through its compliant and trusted platform, 3iQ seeks to offer the
best of both worlds to its investors, providing additional yield
generated by dedicated validators on the Ethereum
network's Proof of Stake (PoS) consensus mechanism, while
eliminating the complexities of directly handling digital
assets.
Fred Pye, Chairman and CEO of
3iQ, said, "Our commitment to innovation is unwavering, and our
history of being at the forefront of digital asset investment
solutions speaks for itself. With the launch of ETH
staking in The Ether Fund and the 3iQ Ether Staking ETF, we are
proud to offer our investors a unique opportunity to fully
participate in the upside growth of Ethereum."
The Funds' digital assets are held in segregated, cold storage
custody accounts with Coinbase Custody Trust Company,
LLC with oversight by Tetra Trust, a qualified custodian backed by
WonderFi and other industry giants. 3iQ also exclusively uses
Coinbase Custody's institutional staking
infrastructure to support ETH staking in these
products.
"Collaborating with 3iQ to provide staking services in
Canada's ETP space aligns with our
strategic mission to deliver safety, security and trust to digital
asset investing while maintaining the highest standards of security
and compliance across all regulatory regimes," said Brett Tejpaul, Head of Coinbase
Institutional.
Didier Lavallée, CEO of Tetra, added, "We are excited to
contribute our expertise to this partnership, and as Canada's only approved custodian for staking,
we are constantly working to ensure safe, secure and successful
experiences for 3iQ's investors."
Although there is currently no minimum or maximum amount of the
portfolio assets of the Funds that may be staked, 3iQ intends to
adopt a measured approach to the Staking Activities, taking into
account the liquidity needs of the Fund and the novelty of the
investment strategy.
3iQ is entitled to receive a portion of the staking rewards
generated for the Funds by the Staking Activities (net of the
validator fees) such that 75% of the rewards accrue to the Funds
and 25% of the awards accrue to 3iQ (the Staking Service Fee). The
Staking Service Fee shall be calculated and paid monthly, in
arrears, plus applicable taxes, and is intended to compensate 3iQ
for the additional work required to administer the Staking
Activities for the Funds. The Staking Service Fee charged by 3iQ
will only be deducted from any rewards generated by the Staking
Activities which will generate income to the Funds.
To learn more about how 3iQ is securing the future of digital
finance with its staking products as well as to view frequently
asked questions and associated risk factors, visit
3iq.io/staking.
About 3iQ Digital Asset Management
Founded in 2012, 3iQ is one of the world's leading digital asset
investment fund managers, offering investors convenient and
familiar investment products to gain exposure to digital assets.
3iQ was the first Canadian investment fund manager to offer public
bitcoin investment funds: The Bitcoin
Fund (TSX: QBTC) (TSX: QBTC.U) and the 3iQ Bitcoin ETF
(TSX: BTCQ) (TSX: BTCQ.U), as well as public ether investment
funds: The Ether Fund (TSX: QETH.UN) (TSX: QETH.U) and the 3iQ
Ether Staking ETF (TSX: ETHQ) (TSX: ETHQ.U). To learn more about
3iQ, visit 3iq.io.
About Coinbase
Coinbase is building the cryptoeconomy – a more
fair, accessible, efficient, and transparent financial system
enabled by crypto. The company started in 2012 with
the radical idea that anyone, anywhere, should be able to easily
and securely send and receive Bitcoin. Today,
Coinbase offers a trusted and easy-to-use platform for
accessing the broader cryptoeconomy. Built for institutions,
Coinbase Prime integrates advanced agency trading,
custody, prime financing, staking, staking infrastructure, market
data, and reporting that supports the entire transaction lifecycle.
We combine these capabilities with leading security, insurance, and
compliance practices to provide institutional clients of
Coinbase with a full-service platform to access
crypto markets at scale.
About Tetra
Founded in 2019, Tetra Trust Company is the leading trust
company licensed to custody digital assets in Canada. Backed by industry giants such as
WonderFi Technologies Inc. (TSX: WNDR) (OTCQB: WONDF) (WKN:
A3C166), Coinbase Ventures, Canadian Securities
Exchange, Urbana, and others, Tetra delivers the most advanced
digital asset storage technology, setting the standard for digital
asset custody in the country. For more information, visit
www.tetratrust.com.
IMPORTANT NOTICES
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED THEREIN, IS
RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, IN
WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM
THE UNITED STATES OR ANY
JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.
This announcement should not be distributed, forwarded,
transmitted or otherwise disseminated in or into the United States. This announcement does not
constitute an offer to sell or issue or the solicitation of an
offer to buy or subscribe for securities in the United States or any other jurisdiction.
The Funds' securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"Securities Act"), or under the applicable securities laws of any
state or other jurisdiction of the United
States, and may not be offered, sold, resold, transferred or
delivered, directly or indirectly within, into or in the United States, absent registration or an
applicable exemption from, or except in a transaction not subject
to, the registration requirements of the Securities Act and in
compliance with the securities laws of any relevant state or other
jurisdiction of the United States.
Neither this announcement, nor the fact that it has been
disseminated, shall form the basis of, or be relied upon in
connection with, any future information that we distribute.
Certain statements contained in this document constitute
forward-looking information within the meaning of Canadian
securities laws. Forward-looking information may relate to matters
disclosed in this document and anticipated events or results and
may include statements regarding the future financial performance
of the funds managed by 3iQ. In some cases, forward-looking
information can be identified by terms such as "may", "will",
"should", "expect", "plan", "anticipate", "believe", "intend",
"estimate", "predict", "potential", "continue" or other similar
expressions concerning matters that are not historical facts.
Actual results may vary from such forward-looking information.
Investors should not place undue reliance on forward-looking
statements. These forward-looking statements are made as of the
date hereof and we assume no obligation to update or revise them to
reflect new events or circumstances.
Commissions, trailing commissions, management fees and
expenses may all be associated with investment funds. Please read
the prospectus before investing. Investment funds are not
guaranteed, their values change frequently and past performance may
not be repeated.
There are ongoing fees and expenses associated with owning
units of an investment fund. An investment fund must prepare
disclosure documents that contain key information about the fund.
You can find more detailed information about the fund in these
documents.
Contacts
3iQ:
Ryan Graham, JConnelly
862-777-4274
rgraham@jconnelly.com
Julie Mercuro, JConnelly
973-349-6471
jmercuro@jconnelly.com
Coinbase:
press@coinbase.com
investors@coinbase.com
Tetra:
press@tetratrust.com
SOURCE 3iQ