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Institutional Investors Embrace Bitcoin as a Serious Investment Option, says 3iQ CEO

Canada's advanced regulatory framework for crypto trading, combined with the increasing recognition of crypto use cases, has sparked the interest of institutional investors in the Bitcoin market, as stated by Fred Pye, CEO of 3iQ.

According to the article published by Cointelegraph, a recent interview with Cointelegraph during Bitcoin 2023, Fred Pye, CEO of 3iQ, discussed how Canada's advanced crypto trading regulations are attracting institutional investors to the digital assets market.

With the decline of Bitcoin's FOMO (fear of missing out), institutional investors and portfolio managers are now recognizing Bitcoin as a viable investment avenue, according to Fred Pye. As Canada's first Bitcoin fund issuer, 3iQ has witnessed this shift firsthand.

Pye highlighted that fund managers and institutional investors are seeking alternative investment strategies in light of the global inflationary environment and macroeconomic challenges. Bitcoin is now being viewed as a serious investment option within diversified portfolios.

"The FOMO in Bitcoin is gone. It's all moved over to AI. So now the institutions and the proper portfolio managers, the people that are responsible for running diversified portfolios, are now starting to take a look at Bitcoin as a serious venue."

Pye emphasized that institutional investors are not solely focused on maximizing profits. He believes that the growing trend in the coming years will be the exploration of crypto use cases. Leveraging the potential of blockchain technology will play a crucial role in this development.

Regulatory hurdles have hindered institutional adoption in the crypto space, but Canada has emerged as a leader in launching crypto exchange-traded funds (ETFs) in North America. While the U.S. Securities and Exchange Commission has been cautious, Canadian regulators have approved several crypto ETFs, including Bitcoin and Ether products from 3iQ, Purpose Investments, and Evolve Funds Group. These offerings have attracted significant investments.

Pye emphasized the advantages of running regulated digital assets ETFs in Canada. He stated that Bitcoin ETFs are similar to gold ETFs, tracking the price of Bitcoin accurately. Additionally, they offer low fees and provide transparency by tracing the origin of Bitcoin, ensuring the acquisition of clean Bitcoin.

Canada's progressive approach to digital assets extends to its initiative for a central bank digital currency (CBDC). The country's monetary authority has initiated a public consultation to gather input on the desired features of a potential digital Canadian dollar. The results of this consultation are expected to be published later this year.

In conclusion, institutional investors and portfolio managers are increasingly recognizing Bitcoin as a serious investment option. Canada's advanced regulation in the crypto space, including the approval of crypto ETFs, has played a significant role in attracting institutional interest. As the industry moves forward, the exploration of crypto use cases and the potential of blockchain technology will shape the future of digital assets.


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