Monex Group to acquire a majority stake in Canadian digital asset fund manager 3iQ Digital Holdings

Monex Group recently revealed its decision to acquire a majority stake in 3iQ Digital Holdings, a digital asset investment fund manager based in Canada. In doing so, Japan’s financial services giant hopes to expand its crypto business.

3iQ Digital is an Ontario-headquartered firm known for launching the first regulated exchange-listed funds for Ethereum and Bitcoin in North America. Furthermore, the company also brought Bitcoin and Ethereum ETFs to the Toronto Stock Exchange, and it was also the first to enable staking for its Ethereum ETF.

The company also manages multiple private investment funds. This started as private placement that was only available to Canadian institutional and accredited investors, only to evolve over time. Now, it’s exchange-traded products allow stockholders to get a direct exposure to Bitcoin’s value.

The goal is to use the long-term holding strategy involving non-redeemable investments funds and achieve capital appreciation.

Monex’s decision aligns with its long-term strategy

Commenting on the acquisition of the majority stake in 3iQ Digital, Monex Group’s CEO, Yuko Seimei, said that the move aligns with the firm’s long-term strategy. The strategy involves expanding the company’s asset management business, and Seimei said he expects the deal to help capture the rising demand for crypto asset management noticed among institutional investors and exchanges.

Frederick T. Pye, the CEO and chairman of 3iQ Digital Holdings, also commented on the acquisition. He said that his firm is looking forward to joining the Monex family. It is particularly excited about the prospect of collaborating with Japan’s crypto exchange powerhouse Coincheck, which now has over 1.8 million user accounts.

“Imagine the synergy. With 3iQ’s expertise in crafting exceptional crypto-asset products, we’re poised to bolster Coincheck’s offerings, especially for institutional investors. This is beyond a win-win – it’s a joyous, groundbreaking collaboration that promises to reshape our industry,” he added.

Recent developments with 3iQ and Monex

3iQ recently also launched the 3iQ Managed Account Platform (QMAP). The platform grants access to a suite of crypto hedge fund-managed accounts, which are available to institutional investors. Furthermore, in order to lend support to the fund, 3iQ addressed a number of issues, including public interest issues, pricing, audit, custody, and more, all in a regulated investment fund.

Now, it acts as a portfolio and investment managed of the fund. Meanwhile, one of the largest regulated exchanges in the US, Gemini, serves as the custodian of the coins held in the fund.

It is also worth noting that Monex had a major strategy change in 2022, and its recent financial results show that its operating income in the US Segment has seen a significant improvement since. The company claims that this is the result of cost reductions and the increased financial income caused by the interest rate hikes.