Fintech
3iQ Supports Legal Measures Taken by Fir Tree Capital Management to Unlock the $4.5 Billion-Plus of Trapped Value to GBTC Shareholders
Toronto, Ontario–(Newsfile Corp. – December 22, 2022) – 3iQ strongly believes that many of GBTC’s shareholders are long-term investors in bitcoin. This statement is presented in the spirit of collaboration among the regulated investment community to achieve the goal of remedying GBTC’s discount and restoring both investor value and investor confidence during a time when they are sorely needed.
3iQ has been working with regulators since 2014 to bring commercially innovative and compliant digital asset products and solutions to global markets. We did this with a fiduciary obligation and at great expense to prioritize an investment structure with integrity that has served our clients over time.
The December 6th court filing from Fir Tree Capital Management (Fir Tree), as well as 3iQ’s own research, indicates that Grayscale has limited the rights of shareholders over time, starting with the revocation of redemption rights in 2014.
Fir Tree’s complaint is a “books and records” action seeking documentation to advance transparency and hopefully resolve this unfair discount by reinstating the redemption feature or instituting a conversion feature. Prior to Fir Tree’s filing, 3iQ engaged Grayscale with suggestions on how to collapse the discount, but to no avail, and bringing about this appeal.
It appears that Grayscale has taken notice of Fir Tree’s complaint. In a letter to investors, Grayscale’s CEO offered to explore a partial tender for GBTC shares. But with few details other than no redemption feature and a stated reliance on SEC approval, Grayscale’s ability to deliver value remains undefined at best.
The Fir Tree filing brought attention to critical components which 3iQ fully supports:
- Grayscale engagement with affiliates brings potential conflicts of interest – Per page 25 of the filing document, “Grayscale has engaged DCG affiliates for nearly all of its essential services, including (i) Genesis, which is a wholly owned subsidiary of DCG.”
- Shareholder redemption option not fully explored – Per the filing, “Grayscale’s disclosures failed to acknowledge, however, that it has never been required to obtain ‘regulatory approval’ to operate a redemption program, provided that it is not creating and redeeming shares at the same time.” Therefore, the decision NOT to offer a redemption mechanism is Grayscale’s alone.
- Grayscale is not delivering on its investment objective for the trust – As stated in the Trust document, “GBTC’s investment objective is for the value of its Shares (based on BTC per Share) to reflect the value of Bitcoin held by the Trust, less fees and expenses.” This failure has caused investors significant harm over the last 12-months with potential for the discount to widen further.
- GBTC shareholders are paying fees based on a valuation that investors cannot realize – Fees paid to Grayscale are based on Net Asset Value (NAV), which is almost 2x greater than the market value that investors would realize in a secondary market sale.
Regarding Fir Tree’s plea to have Grayscale restore the redemption feature, 3iQ’s current regulated structure can help remedy GBTC’s discount and restore value to investors.
3iQ Proposes a Market Solution for GBTC Shareholders
We encourage Grayscale to offer a conversion feature for GBTC that allows the physical movement of bitcoin to one of our current solutions. This would minimize the market impact of an immediate and wholescale redemption without burdening the courts or the taxpayer. A path forward to remedy the situation would include some or all the following attributes:
- Initiate a tender offer for the conversion of GBTC for a new or existing regulated bitcoin vehicle with redemption rights
- New or existing regulated bitcoin vehicles that facilitate cash or in-kind redemptions at Net Asset Value per Unit (NAVPU), less fees and expenses
As a registered digital asset manager, 3iQ appreciates and understands the need to restore confidence among institutions and investors that believed GBTC was a long-term, cost-effective, and secure, physically backed investment vehicle. Grayscale has been unresponsive to our outreach, however, 3iQ now calls on our clients, supporters, and peers in the regulated investment community to join this broader appeal. Together, we can help remedy GBTC’s discount and restore investor value and investor confidence.
About 3iQ
Founded in 2012, 3iQ is one of world’s leading digital asset investment fund managers. 3iQ was the first Canadian investment fund manager to offer a public bitcoin investment fund, The Bitcoin Fund (TSX: QBTC) (TSX: QBTC.U), and a public ether investment fund, The Ether Fund (TSX: QETH.UN) (TSX: QETH.U). More recently, 3iQ launched the 3iQ CoinShares Bitcoin ETF (TSX: BTCQ) (TSX: BTCQ.U) and the 3iQ CoinShares Ether ETF (TSX: ETHQ) (TSX: ETHQ.U). 3iQ offers investors convenient and familiar investment products to gain exposure to digital assets.
Press Contact:
Mark Connors
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As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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