Canadian investment fund manager 3iQ received initial approval for its long way to launch a Bitcoin closed-end fund on the Ontario Stock Exchange later this quarter.

The company said Wednesday it had received a favorable ruling before a panel of the Ontario Securities Commission (OSC) for the Bitcoin Fund, noting that the commission had ordered the director of the OSC to issue a received for a final prospectus.

"We discussed pricing, custody, auditing and the public interest issues in a regulated investment fund. We intend to re-file the prospectus as soon as possible, "said CEO Fred Pye in a statement.

3iQ claims that its entrant is "the world's first publicly traded and publicly traded bitcoin fund", with the difference that other companies have launched similar unregulated products or smaller stock exchanges. In June, the Swiss company Amun AG launched its Exchange Traded Product (ETP) using the Bitwise 10 Select Large Cap Crypto Index as a benchmark on the Swiss SIX Exchange.

According to Pye, 3iQ was working closely with the OSC's Investment Funds and Structured Products Directorate to create an investment fund that would allow individual investors to participate in a regulated and publicly traded fund.

Gemini Trust Company LLC, based in New York, will provide custody services to manage the fund's bitcoins.

3iQ, in partnership with asset manager VanEck, has developed an innovative bitcoin benchmark from MV Index Solutions of VanEck, a regulated index provider dedicated to the development of indices and cryptocurrency data sets.

VanEck withdrew its own demand for exchange-traded funds from the US Securities and Exchange Commission in late January 2019.

In April, 3iQ acquired First Block Capital's fund management rights, including the FBC Bitcoin Trust and the Adopters FBC Distributed Ledger Technology ETF, while First Block holds a strategic investment in 3iQ.

Bitcoin markets the image via Shutterstock

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