Global digital assets investment leader
works diligently to address potential hard fork for funds with ETH
exposure
TORONTO, Sept. 14,
2022 /PRNewswire/ -- 3iQ Digital Asset Management
(3iQ), a leading global digital asset investment fund manager,
today announced it is taking proactive measures for its investors
with the possibility of at least one hard fork of the Ethereum
protocol which may result in one or more new tokens.
3iQ, led by its industry-leading independent research and
digital assets portfolio management, is monitoring these potential
developments and remains in close consultation with other market
participants and its service partners on all aspects of the Merge
including the potential hard forking of Ethereum blockchain. 3iQ
offers a number of investment strategies with ETH exposure
including the 3iQ CoinShares Ether ETF (TSX: ETHQ) and the Ether
Fund (TSX: QETH), which became North
America's first spot Ether exchange-traded product (ETP)
when it launched in December
2020.
Ethereum's proof-of-work (PoW) Mainnet merge with the Beacon
Chain proof-of-stake (PoS) system may potentially lead Ethereum
miners to pursue two different pathways. The first would be to find
a new PoW blockchain that supports their existing mining hardware.
The second pathway would be to reject the upgrade and continue to
mine Ethereum under its previous PoW consensus mechanism by
creating a new blockchain. If miners were to pursue this second
pathway, a chain split is expected to occur that would spawn a
variant of the post-Merge Ethereum PoS blockchain. Such new
versions of Ethereum would continue operating on a PoW consensus
mechanism. Assuming only one hard fork for illustrative purposes,
the result would be two separate blockchain networks with two
different native tokens: Ethereum (ETH) and an EthereumPoW
token.
With the Merge and potential hard fork, 3iQ has no intention to
halt trading of QETH and ETHQ and additional products with ETH
exposure like the 3iQ Global Cryptoasset Fund. ETHQ will remain
open for daily creations and redemptions as normal course of
business, just as it has during every trading day since the ETF's
inception.
"3iQ will always put our investors and shareholders' best
interests first," said Fred Pye,
Chairman and CEO of 3iQ. "Our best-in-class team will continue to
evaluate all aspects of the Merge and potential hard forking of
Ethereum blockchain. We will regularly update investors and
continue to examine all possible avenues to maximize unitholder
accretion while maintaining our Funds' investment objectives."
3iQ has plans in place to price the value of potential forked
assets – if any – in line with fund value principles. And in the
event of any hard forking, 3iQ would plan to keep such PoW assets
in their funds in the short-term while continuously reevaluating
and updating investors as more information becomes available.
For more information around the Merge and potential hard forking
of Ethereum blockchain, read 3iQ's research pieces "The Merge,"
"What the Fork?" and "Show Time." To learn more about 3iQ's digital
asset offerings, visit www.3iQ.ca.
About 3iQ Corp.
Founded in 2012, 3iQ Corp. (3iQ) is Canada's leading digital asset investment fund
manager with more than C$700 million
in assets under management. 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.
Not for distribution to Australia newswire services or for
dissemination in Australia.
This announcement and the information contained herein is
restricted and is not for release, publication or distribution, in
whole or in part, directly or indirectly in, or into or from the
Australia or any other
jurisdiction in which the same would be unlawful.
You will usually pay brokerage fees to your dealer if you
purchase or sell units of the ETF on a stock exchange or other
alternative Canadian trading system (an "exchange"). If units of
the ETF are purchased or sold on an exchange, investors may pay
more than the current net asset value when buying units of the ETF
and may receive less than the current net asset value when selling
them.
There are ongoing fees and expenses associated with owning
units of an investment fund. An investment fund must prepare
disclosure documents that contain key information about the fund.
You can find more detailed information about the ETF in its public
filings available at www.sedar.com. Investment funds are not
guaranteed, their values change frequently and past performance may
not be repeated.
Certain statements contained in this document constitute
forward-looking information within the meaning of Canadian
securities laws. Forward-looking information may relate to matters
disclosed in this document and anticipated events or results and
may include statements regarding the future financial performance
of the funds managed by 3iQ. In some cases, forward-looking
information can be identified by terms such as "may", "will",
"should", "expect", "plan", "anticipate", "believe", "intend",
"estimate", "predict", "potential", "continue" or other similar
expressions concerning matters that are not historical facts.
Actual results may vary from such forward-looking information.
Investors should not place undue reliance on forward-looking
statements. These forward-looking statements are made as of the
date hereof and we assume no obligation to update or revise them to
reflect new events or circumstances.
Contacts
3iQ:
Ryan Graham, JConnelly
862-777-4274
rgraham@jconnelly.com
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SOURCE 3iQ