With Coinbase as a strategic collaborator, these measures by 3iQ represent another digital asset investment "first" in
3iQ believes that the realization of staking activities will provide the Funds and their unitholders with an opportunity for yield enhancement. 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 while augmenting the Funds exposure to ETH.
"While staying true to the investment objectives of the Funds, we believe that commencing ETH staking offers the best of both worlds to our investors – providing additional yield while eliminating the complexities of directly handling digital assets," said
With Coinbase
In 2020, 3iQ launched
Staking Activities
3iQ has partnered with its custodian, Coinbase Custody, to provide secure staking activities to the Funds. 3iQ will be responsible for directing Coinbase Custody to delegate ETH that is held via Coinbase Custody in a cold wallet to a validator. Rewards earned on the delegated ETH will be paid in ETH, subject to any bonding or lock-up period. Coinbase Custody will be entitled to a fee in respect of the rewards and may pay a portion of that fee to any third-party service provider acting as a validator. Subject to any required approvals, 3iQ will enter into a revenue sharing arrangement pursuant to which it would be entitled to a specified share of the earned rewards. 3iQ will provide notice of the revenue sharing arrangement prior to the implementation of the staking activities of the Funds. A Fund's portion of the rewards will be delivered to a custodial wallet of the Fund held with Coinbase Custody. Such portion of the ETH rewards will be reinvested in the Fund and staked in accordance with the staking activities. Although there is currently no minimum or maximum amount of the portfolio assets of a Fund that may be staked, 3iQ intends to adopt a measured approach to the staking activities, taking into account the liquidity needs of the Funds, the novelty of the investment strategy as well as any applicable regulatory requirements and approvals.
For more information on staking, the Ethereum network and the staking activities of the Funds, including the risks associated therewith, please visit https://3iq.io/staking (the "FAQ"). A summary of these items, which is qualified by the more detailed disclosure in the FAQ, is also provided below.
Recent Changes to the Ethereum Network
The ability of the
Risks Associated with Staking
There are risks associated with the staking activities, including third-party risk, illiquidity risk, risks from slashing and missed rewards, due diligence risk related to validators and the Ethereum network, short history risk, regulatory risk and risks related to uncertain tax consequences. For further discussion relating to the risks associated with staking activities, please refer to the FAQs.
Approval of Staking Activities
3iQ shall ensure that all staking activity complies with applicable laws and continues to work with regulators in
About 3iQ Digital Asset Management
Founded in 2012, 3iQ is one of the world's leading digital asset investment fund managers. 3iQ was the first Canadian investment fund manager to offer a public bitcoin investment fund: The Bitcoin Fund (TSX: QBTC) (TSX: QBTC.U), and a public ether investment fund:
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.
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:
862-777-4274
rgraham@jconnelly.com
973-349-6471
jmercuro@jconnelly.com
Coinbase:
press@coinbase.com
investors@coinbase.com
SOURCE 3iQ
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