Toronto’s 3iQ Digital Asset Management (3iQ) has struck a partnership with Calgary’s Tetra Trust and Coinbase aimed at expanding the exchange-traded product (ETP) ecosystem for digital assets in Canada and generating new interest from the investment community.
Founded in 2012, 3iQ is Canada’s leading digital asset investment fund manager with more than $700 million in assets under management.
Tetra Trust is the first and only trust company licensed to custody digital assets in Canada. Coinbase is one of the largest crypto custodians in the U.S. with over 100 million people and businesses trust them to buy, sell, and manage crypto.
With this new collaboration, Coinbase and Tetra will serve as custodians for 3iQ’s ETPs, including the 3iQ CoinShares Bitcoin ETF (TSX: BTCQ) and the Bitcoin Fund (TSX: QBTC), which became North America’s first bitcoin ETP when it launched in April 2020. They will also serve as custodians for 3iQ CoinShares Ether ETF (TSX: ETHQ) and the Ether Fund (TSX: QETH).
In the past these ETFs have all used American or international options for their custody needs. 3iQ will be transitioning out of its current custodianship arrangements, and this new partnership is expected to come into full effect over the next few months.
“This is an important development for Tetra. The demand for investing in digital assets continues to grow and we know investors are looking for ETPs that are backed by a safe and trusted custody solution developed right here in Canada,” Tetra Trust’s CEO Didier Lavallée told Fintech.ca.
“3iQ is one of the country’s largest digital asset investment fund managers so working with them certainly proves out our business case and shows other companies the capabilities we have and what we bring to the table.”
3iQ has also selected Coinbase Prime to provide crypto trading, prime brokerage and reporting capabilities for its crypto ETP products.
“Coinbase is proud to be partnering with 3iQ as their exclusive prime broker and as a custodian partner along with Tetra,” said Steve Capozza, Director of Coinbase Institutional Sales.
“With powerful financing capabilities and flexible operational workflows, our solution helps ETP issuers bridge the gap between the world of T+2 settled traditional securities and instantly-settled crypto assets.”