3iQ, CoinDesk launch global digital asset fund partnership

3iQ, CoinDesk launch global digital asset fund partnership
The two crypto-focused firms' new venture gives advisors an onramp to expand portfolio exposures gradually beyond Bitcoin.
SEP 16, 2024

3iQ Corp. has announced a collaboration with CoinDesk Indices to launch a series of investment funds to help more investors gain index-based exposure to the world of digital assets.

Under the partnership, the two firms will put together a series of fund structures that track the CoinDesk 20 Index, which follows the performance of 20 top digital assets, providing broad exposure to the cryptocurrency market.The first fund to be launched, the CoinDesk 20 Index SP, is a segregated portfolio company of 3iQ Investment Partners SPC.

The CoinDesk 20 Index, a market-cap-weighted index that sets concentration caps on its constituents, is designed to offer investors access to a diversified digital asset portfolio. The index has been adopted by leading market-markers and participants including Onramp Invest, a blockchain investment-focused TAMP that caters to RIAs.

"CoinDesk Indices provides a highly liquid and tradeable means to access digital assets," Pascal St-Jean, president and CEO of 3iQ, said in a statement Monday. "Advisors have an appetite for digital assets but don’t have the conviction to track assets beyond bitcoin. This offering opens up broad-based exposure as they seek a diversified digital asset portfolio."

For years, 3iQ has been among the pioneers in advancing crypto into the mainstream. In 2021, it was one of the first asset managers to launch a spot bitcoin ETF in Canada, which was the first country in the world to approve direct Bitcoin exposure within an ETF structure.

This collaboration comes as interest in cryptocurrency investments continues to grow among financial advisors. A recent survey by the Digital Assets Council of Financial Professionals found that 40 percent of advisors now recommend cryptocurrency investments to at least half of their clients, a notable rise from 32 percent just a few months prior. 

The data highlights increasing client demand for comprehensive digital asset strategies, especially as investment vehicles like spot bitcoin exchange-traded products and, more recently, Ether ETFs become available in the US. But the DACFP poll shows tempered optimism, with one in four advisors calling for a portfolio allocation of 2 percent to crypto.

Alan Campbell, president of CoinDesk Indices, expressed optimism about the new partnership. "We are thrilled 3iQ will enable investors worldwide to access the CoinDesk 20, addressing the growing need for diversified digital asset exposure," he said.

The initial CoinDesk 20 SP fund will offer monthly liquidity, with 3iQ waiving management fees for the first six months.

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