The Bitcoin Fund Announces Voluntary Conversion Option to the 3iQ CoinShares Bitcoin ETF

Toronto, Ontario, CANADA


Toronto, May 14, 2021 (GLOBE NEWSWIRE) -- Not for distribution to U.S. newswire services or for dissemination in the United States.

This announcement and the information contained herein is restricted and is not for release, publication, or distribution, in whole or in part, directly or indirectly in, or into or from the United States or any other jurisdiction in which the same would be unlawful. Further, this announcement is for information purposes only and shall not constitute an offer to sell or issue or the solicitation to buy, subscribe for or otherwise acquire any securities of The Bitcoin Fund or the 3iQ CoinShares Bitcoin ETF in any jurisdiction in which any such offer or solicitation would be unlawful.

3iQ Corp. ("3iQ"), the largest digital asset manager in Canada, is pleased to announce that holders of units of The Bitcoin Fund (TSX: QBTC, QBTC.U) will have the voluntary option to convert all or part of their units into units of the 3iQ CoinShares Bitcoin ETF (TSX: BTCQ, BTCQ.U). 

This conversion will be effected on a relative net asset value basis (NAV-for-NAV), and will be available as an additional option to unitholders of The Bitcoin Fund in connection with the upcoming annual redemption of this Fund.

With this option, unitholders of The Bitcoin Fund will have three available options to receive redemption proceeds: in cash, in-kind (subject to meeting certain minimum deposit thresholds), and the voluntary conversion on a NAV basis to units of the 3iQ CoinShares Bitcoin ETF.

“Our unitholders of The Bitcoin Fund have asked for an easy option to diversify some of their investment into our 3iQ CoinShares Bitcoin ETF, and we are happy to provide them with this avenue” said Fred Pye, Chairman & CEO of 3iQ.

In order to convert Class A units of The Bitcoin Fund into units of 3iQ CoinShares Bitcoin ETF, unitholders must submit a redemption request, no later than 5:00 p.m. EST on May 31, 2021 (“the cut-off”), to The Canadian Depository for Securities Limited (“CDS”) through their investment dealer and direct that the redemption proceeds be applied to the purchase of units of the 3iQ CoinShares Bitcoin ETF. Unitholders should note that their investment dealer may require additional time in order to be able to submit a redemption and purchase notice through CDS in time to meet the cut-off and should therefore contact their investment dealer well in advance of the cut-off time. Unitholders should be aware that the redemption portion of the redemption and purchase transaction will constitute a disposition for tax purposes of units of The Bitcoin Fund by unitholders.

About 3iQ Corp.

Founded in 2012, 3iQ is Canada’s largest digital asset investment fund manager with more than C$3.6 billion in assets under management. 3iQ was the first Canadian investment fund manager to offer a public bitcoin investment fund, The Bitcoin Fund (TSX: QBTC, QBTC.U), and a public Ether investment fund, The Ether Fund (TSX: QETH.UN, QETH.U). More recently, 3iQ launched the 3iQ CoinShares Bitcoin ETF (TSX: BTCQ, BTCQ.U) and the 3iQ CoinShares Ether ETF (TSX: ETHQ, ETHQ.U). 3iQ offers investors convenient and familiar investment products to gain exposure to digital assets. For more information about 3iQ and its digital asset investment funds, visit www.3iQ.ca or follow us on Twitter @3iQ_corp.

Please read the prospectus before investing. Important information about The Bitcoin Fund and the 3iQ CoinShares Bitcoin ETF (together, the “Funds”) is contained in the prospectus. Copies of the prospectus may be obtained from 3iQ Corp. or at www.sedar.com.

You will usually pay brokerage fees to your dealer if you purchase or sell units of the Funds on a stock exchange or other alternative Canadian trading system (an “exchange”).  If units of the Funds are purchased or sold on an exchange, investors may pay more than the current net asset value when buying units of the Funds and may receive less than the current net asset value when selling them.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

IMPORTANT NOTICES

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED THEREIN, IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.

This announcement should not be distributed, forwarded, transmitted or otherwise disseminated in or into the United States. This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or subscribe for securities in the United States or any other jurisdiction. The Funds’ securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or under the applicable securities laws of any state or other jurisdiction of the United States, and may not be offered, sold, resold, transferred or delivered, directly or indirectly within, into or in the United States, absent registration or an applicable exemption from, or except in a transaction not subject to, the registration requirements of the Securities Act and in compliance with the securities laws of any relevant state or other jurisdiction of the United States.  Neither this announcement, nor the fact that it has been disseminated, shall form the basis of, or be relied upon in connection with, any future information that we distribute.

 

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