In February, we wrote about the decision by the Acting Director of Investment Funds and Structured Products (Director) of the Ontario Securities Commission (OSC) not to issue a receipt to 3iQ Corp. (3iQ) for its proposed, non-redeemable bitcoin fund (Fund) prospectus. 3iQ and the Fund challenged that decision, and on October 30 Commissioner Haber issued his reasons (Reasons) for setting aside that decision and requiring the Director to receipt the prospectus (Order).
We will discuss Reasons in more detail next month. For now, we think our readers will be interested to know that Commissioner Haber wasn’t persuaded by staff’s concerns about the integrity of bitcoin markets or the Fund’s ability to comply with the illiquid asset restrictions in National Instrument 81-102 Investment Funds, value and safeguard bitcoin, and file audited financial statements. He also declined staff’s request to impose any terms and conditions on the Order.