On October 29, 2019, the Ontario Securities Commission (OSC)
issued reasons for its decision to allow 3iQ Corp.
(3iQ), a Canadian investment fund manager, to offer the first
publicly offered bitcoin fund in Canada. The OSC Panel ordered that
the Director issue a receipt for a final prospectus of The Bitcoin
Fund (the Fund), setting aside an earlier decision of the Director
to deny the receipt.1
The OSC Panel explained that although the concerns about bitcoin
expressed by the Director and OSC staff (Staff) had merit, their
concerns did not warrant denying a receipt. The OSC Panel's
reasons are notable because they provide insight into the OSC's
perception of the risks associated with bitcoin, and the
regulator's expectations on managers of prospective bitcoin
investment funds in recognizing these risks and employing
safeguards to mitigate them.
