- May 26, 2023
- Posted by: [email protected]
- Category:
Fred Pye, CEO of 3iQ, Canada’s first Bitcoin fund issuer, states that institutional investors and portfolio managers are now considering Bitcoin as a credible investment option in light of the fading hype around the cryptocurrency. During an interview at the Bitcoin 2023 event, Pye highlights Canada’s advanced regulations for crypto trading, which have attracted investors to the digital asset market.
Amidst a global environment of inflation and macroeconomic challenges, fund managers and institutional investors managing diversified portfolios are seeking alternative investment strategies. Pye observes a shift away from the “fear of missing out” (FOMO) sentiment in Bitcoin, with institutions and responsible portfolio managers now viewing it as a legitimate investment avenue.
According to Pye, it is not just about maximizing profits; institutional investors are increasingly interested in the growing trend of crypto use cases. He believes that 2024 and beyond will be focused on leveraging the technology’s potential for practical applications. Pye emphasizes the need to put the technology to work and explore its various use cases.
While regulatory obstacles have impeded institutional adoption in many regions, Canada has emerged as a leader in launching cryptocurrency exchange-traded funds (ETFs) in North America. Unlike the cautious stance of the U.S. Securities and Exchange Commission, Canadian regulators have approved multiple crypto ETFs, including Bitcoin and Ether products from companies like 3iQ, Purpose Investments, and Evolve Funds Group. These ETFs have attracted substantial investments, proving their value in the regulated digital asset space.
Pye expresses confidence in running regulated digital asset ETFs in Canada, asserting that they have never been mispriced. He compares running a Bitcoin ETF to running a gold ETF, highlighting the identical tracking of Bitcoin prices and low fees. He further emphasizes the transparency and traceability of Bitcoin purchases, assuring investors that only clean Bitcoin is acquired.
Canada’s progressive approach to digital assets extends to its ongoing public consultation on a potential central bank digital currency (CBDC). The Canadian monetary authority is seeking feedback from citizens to determine the desired features of a digital Canadian dollar. The results of the consultation are anticipated to be published later this year, showcasing Canada’s commitment to exploring and embracing digital asset innovations.
