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
[email protected]
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Plug and Play, a global accelerator platform and one of the most active early-stage investors globally, has announced a strategic partnership with Gujarat International Finance Tec-City (GIFT City). Through the partnership, Plug and Play will establish and run the International Fintech Innovation Hub (IFIH), GIFT City’s FinTech Incubator and Accelerator, which aims to foster research and innovation in financial technology, reinforcing GIFT City’s role as a premier global fintech hub.
GIFT City’s MD and Group CEO, Mr. Tapan Ray, said, “Our vision at GIFT City is to drive fintech innovation by creating a climate-resilient, inclusive ecosystem that empowers diverse entrepreneurs and builds workforce competitiveness in emerging technologies. With the support of prominent partners in fintech education and incubation, we are committed to nurturing a new generation of talent that will be well-equipped to meet the needs of an evolving global economy.”
Manav Narang, Head of Financial Services for Plug and Play APAC and Program Lead for the GIFT Incubator and Accelerator added, “We are thrilled to bring Plug and Play’s global expertise to GIFT City. Our vision is to create India’s largest industry-wide fintech program – a collaborative platform where banks, payments corporations, venture capital and corporate venture capital firms, accelerators, and ecosystem partners unite. Together, we aim to catalyze transformative fintech solutions and nurture fintech unicorns that will shape the future of finance in India.”
The program will support fintech startups with resources, mentorship, capital, and networking to navigate and excel globally in the dynamic fintech landscape. The first batch of startups will be unveiled in January 2025.
The post Plug and Play and GIFT City Launch “IFIH,” a Global Fintech Incubator and Accelerator appeared first on .
Doo Group’s brokerage brand, Doo Financial is thrilled to announce its expansion into Indonesia by acquiring a reputable Indonesian broker to expand the business. This move brings its global investment services to local investors. Backed by the strength of Doo Group’s extensive international presence, cutting-edge technology, and 10 years of expertise, Doo Financial is well positioned to support investors at every level.
As a brand encompassing investment services offered by various legal entities within the Doo Group, Doo Financial provides a comprehensive range of global brokerage services. This wide range of products empowers investors to pursue their financial goals.
With a diversified portfolio, Doo Financial empowers investors to navigate various market conditions effectively, manage risks, and focus on long-term growth. This entry into the Indonesian market reflects Doo Financial’s commitment to supporting investors with flexible, high-quality investment options tailored to today’s dynamic financial landscape.
Supervision by International Regulatory Institutions to Ensure Top-Tier Safety
As a global leading finance group, Doo Group has licensed entities regulated by top regulatory authorities worldwide, ensuring a secure and reliable trading environment.
Our global credentials include licenses from the U.S. Securities and Exchange Commission (US SEC), the Financial Industry Regulatory Authority (US FINRA) in the U.S., the Financial Conduct Authority (UK FCA) in the UK, the Australian Securities and Investments Commission (ASIC), the Hong Kong Securities and Futures Commission (HK SFC), Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI) in Indonesia. These licenses enable us to provide secure and reliable financial services globally.
Dedication to Shape the Industry with Innovative Solutions
Doo Financial’s expansion into Indonesia brings advanced technology and a global perspective to empower local investors. As an international investment firm committed to secure and seamless trading, Doo Financial offers a diverse range of products and services to help diversify portfolios and open up new opportunities.
This growth elevates opportunities for Indonesian investors by offering seamless access to global markets and advanced trading platforms within a secure and regulated environment. It broadens investment choices and enhances the trading experience, aligning it with international standards and empowering local investors with comprehensive tools and resources for success.
Driven by unwavering commitment, this growth marks a significant milestone in Indonesia’s investment landscape, equipping our clients with the tools to navigate global markets. We remain dedicated to delivering exceptional service, exploring new opportunities, and driving future breakthroughs. With continued support from the FinTech community, we are excited to innovate and shape the future of finance.
Stay updated with the latest insights from Doo Financial. Join our community of empowered investors and let us be your trusted partner!
E-mail: [email protected]
The post Doo Financial Now in Indonesia: Offering Local Investors A Gateway to Global Markets appeared first on .
Fintech is on an accelerated trajectory of investment, collaboration, and innovation. This pulse tracks the most significant developments in the sector, from high-profile investments to global platform expansions. Each update in this briefing serves as a key indicator of where the industry is headed.
1. European Fintechs Face Regulatory Pressures Amid New Investment Surge
The European fintech sector finds itself at a crossroads with increasing scrutiny and rising costs due to stringent regulations. While investments continue to flow into the continent’s financial technology companies, challenges in meeting new compliance requirements, especially around data privacy and cybersecurity, create a complex landscape for scaling. This tension between opportunity and operational limitations might affect European fintechs’ growth strategies.
Source: Financial Times
2. Shopify, Slack Founders Join Peter Thiel in Fintech Investment Push
Tobi Lütke of Shopify and Stewart Butterfield of Slack, along with investor Peter Thiel, have co-invested in a new fintech initiative that aims to bolster small business access to capital. By merging technology with a streamlined funding model, this new initiative targets underserved SMBs, highlighting a broader trend of high-profile tech leaders pivoting to fintech investment. The participation of Lütke and Butterfield signals increased cross-sector collaboration in fintech, bringing expertise from e-commerce and communication technology into the financial arena.
Source: Yahoo Finance
3. Lean Technologies Raises $67.5 Million to Drive Fintech Innovation in the Middle East
Riyadh-based fintech platform Lean Technologies recently secured a $67.5 million Series B investment round, aiming to expand its operations across the Middle East. This funding reflects growing investor interest in emerging markets and the potential of Middle Eastern fintech to bridge regional gaps in financial services access. As Lean Technologies broadens its service offerings, the funding will support further technological integration and scalability across financial ecosystems in the region.
Source: Fintech Global
4. Apollo Global Management Invests in Fintech for Private Offerings Support
Apollo Global Management has taken steps to enhance its services for private offerings by investing in specialized fintech solutions. This development signifies a growing trend among private equity firms to adopt fintech as a core component in their service expansion, particularly for personalized client services. Apollo’s strategy of integrating fintech solutions into private offerings marks a strategic shift toward digitalization within traditional financial sectors.
Source: Bloomberg
5. Juniper Research Names 2025’s Future Leaders in Fintech
Juniper Research has revealed its picks for the top future leaders in fintech for 2025. This list emphasizes innovation in fields such as AI, open banking, and decentralized finance, highlighting startups that exhibit potential for reshaping industry standards. As these up-and-coming firms push the boundaries of traditional finance, they exemplify the rising tide of next-generation financial technology poised to become industry mainstays.
Source: Globe Newswire
Conclusion
The convergence of seasoned tech giants with fintech, new funding rounds for region-specific platforms, and the rise of future industry leaders underscore the momentum of the fintech sector. Each of these stories reflects a broader narrative: fintech is not only diversifying in services but also rapidly integrating into traditional finance and tech, paving the way for a transformative era.
The post Fintech Pulse: Evolving Fintech Investments and Partnerships Signal Industry Transformation appeared first on HIPTHER Alerts.
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