3iQ is a Canadian company that has launched spot ETFs on Bitcoin and Ethereum on the Toronto Stock Exchange. Now together with the Gemini exchange, which will act as custodian, and BITRIA, it will launch new US crypto investment accounts aimed at high net worth customers.
This will allow such customers to invest in cryptocurrencies even without having to use instruments such as spot ETFs that are not yet authorized in the US.
31Q’s crypto investment accounts
These are Separately Managed Accounts (SMAs), managed by 3iQ advisors on behalf of clients. The minimum amount to be invested will be $100,000.
3iQ will create portfolios based on Bitcoin, Ethereum and an index that tracks the price movements of the top 10 cryptocurrencies by market capitalization, DeFi tokens, and other cryptocurrencies used for trading and non-custodial lending.
According to the president of 3iQ’s US branch, Chris Matta, this solution would be preferable for clients because this way the selected assets would go through a rigorous due diligence process.
This process will actually be handled by Gemini, which will take care of the custody of the tokens. Matta reveals that Gemini already has a very robust process for adding digital assets, and as new tokens are added they will also become available to investors in these SMAs.
In addition, such a tool would also allow any losses to be tax-deferred by adding them to any financial gains, which is not available with ETFs.
3iQ’s turning point
According to Matta, other crypto asset managers have also launched SMAs in the past, but they were usually small startups. In the case of 3iQ, however, it would be the first major manager to launch a product like this in the US market.
The fact is that for many investors, cryptocurrencies are difficult both to manage and to follow, given their volatility. This is why managed financial instruments that do not force the investor to do anything except decide where and how much to invest are successful.
Large professional financial investment firms, such as 3iQ, have a good chance of bringing new, easy-to-use instruments to the market because the responsibility for managing and tracking crypto is entrusted to experienced professionals.