Monex acquires majority stake in Canadian digital asset manager

Monex is acquiring a majority stake in Canadian digital asset manager 3iQ.

Monex, a Japanese financial group, is a business that includes asset management, online brokerage and a crypto exchange. 

It owns TradeStation in the US and bought Coincheck back in 2018 after the crypto exchange was hacked. TradeStation was acquired by Monex back in 2011.

No financial details of the deal were disclosed.

Read more: The year’s most significant crypto M&A deals — and how 2024 might shape up

3iQ is best known for its bitcoin ETF listed in Canada; it’s one of a handful of bitcoin ETFs listed in Canada. However, it was the first to list the bitcoin fund back in 2020. 

The fund reached approximately $755 million ($1 billion CAD) in assets in the weeks after its launch, but the numbers have since drifted down to around $100 million in assets. 

Blockworks previously reported that the Ontario Securities Commission (OSC) signed off on the launch of bitcoin ETFs after it signed off on a workflow for daily liquidity, and became comfortable with investment-grade custody and infrastructure services.

“3iQ emerged as one of the first to introduce Bitcoin and Ethereum ETFs on the Toronto Stock Exchange, cementing their role as market leaders. The company continued to break new ground, recently becoming the first globally to integrate Staking capabilities within an Ethereum ETF — a game-changing move for digital asset management,” a press release said. 

3iQ, in 2022, even floated helping US spot bitcoin ETF hopefuls. The US Securities and Exchange Commission is currently mulling over a dozen proposals for a spot bitcoin ETF in the US. 

Read more: January bound: SEC sets decision date on Ark, 21Shares bitcoin ETF

“In response to a dynamic market trend where major crypto asset exchanges are diversifying into asset management, 3iQ is once again leading the charge. They plan to offer unparalleled asset management services on an outsourced basis, staying ahead of the curve and catering to the evolving needs of their clients,” the release said.

3iQ CEO Frederick Pye said, “with 3iQ’s expertise in crafting exceptional crypto asset products, we’re poised to bolster Coincheck’s offerings, especially for institutional investors.”

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