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NRF advises 3iQ on new crypto-related ETFs
3iQ has listed two ETFs (the 3iQ CoinShares Bitcoin Feeder ETF and the 3iQ CoinShares Ether Feeder ETF) on the Cboe Australia exchange, with the assistance of global law firm Norton Rose Fulbright.
Adrian Suljanovic
Firm: Norton Rose Fulbright (3iQ)
Value: N/A
Area: Finance
Key players: The Norton Rose team was co-led by partners Jeremy Wickens and Jon Ireland, who were supported by special counsel Peter Moh, senior consultant Stephen Etkind and associates Wilson Au, Ellen Laughton and Merren Taylor.
Deal significance: The deal is a continuation of 3iQ’s expansion outside of the Canadian market.
With the rising institutional and retail interest in crypto products such as bitcoin and ethereum, 3iQ’s ETFs will allow investors to gain exposure to cryptocurrencies in a regulated and low-cost environment.
Norton Rose partners Jeremy Wickens and Jon Ireland commented on the transaction: “This transaction was particularly significant for 3iQ as it continues to expand its presence to markets outside of Canada. We are delighted to achieve this outcome for our client, given the earlier uncertainty of the regulatory environment and other hurdles to list a crypto ETF in Australia.”
All aspects of the transaction were overseen by Norton Rose Fulbright. This included preparation of the PDSs and Cboe listing applications (as well as liaising with Cboe), advising on AFSL, marketing matters and website establishment.
Along with this, Norton Rose liaised with the ASX and ASIC to establish the feeder funds and negotiated with fund documentation, including the constitution and investment management agreement.
Mr Wickens and Mr Ireland commented on the complexity of the transaction as all parties involved had to work closely with ASIC, Cboe and its Australian advisers to “ensure the funds operate in accordance with Australian financial services regulation” and fell in line with “the updated Cboe Operating Rules in respect of eligible crypto-assets”.
“With 3iQ and its other service providers, we are very pleased to have been able to address ASX Clear’s significant cash margin requirements for clearing participants who clear crypto products and the particular challenges for market makers in the crypto space.”
