3IQ ETF

0
0

What are the pros and cons of owning 3IQ compared to owning Bitcoin itself?

Marked as spam
Asked on January 9, 2021 3:53 pm
0 views
0
Private answer

Thanks Mat!

Marked as spam
Posted by Connor Frank
Answered on January 10, 2021 9:14 pm
0
Private answer

Thanks Mat. How do you find the NAV%

Marked as spam
Posted by Connor Frank
Answered on January 10, 2021 2:44 pm
0
Private answer

hi there,

First off, 3IQ and QBTC are one and the same - 3IQ created the bitcoin ETF under the symbol QBTC.

The ETF is built to track the performance of Bitcoin and it is very new. Will it be successful in achieving this is not yet known. I've noticed that the ETF is trading at a pretty hefty premium its NAV so there is a risk you are overpaying for the ETF. On the bright side, holding the ETF in a TFSA or RRSP means your gains are tax free. It is a very new product so there is still risk in that.

Owning the physical coin itself, is the best way to get the closest to real value. It does have fees however - higher than buying/selling ETFs. Another benefit, the crypto can be used as a medium of exchange. More and more companies are accepting bitcoin as a form of payment. It is however, subject to tax if you sell for a profit.

For what it's worth - this is my approach. If I can get the ETF at a discount or between 0-10% of NAV - then I'll buy the ETF in my TFSA. If not, I'll continue to buy Bitcoin itself. That is the approach I am currently taking. Thus far, I haven't bought QBTC and simply hold bitcoin itself.

Mat

Marked as spam
Posted by Mathieu Litalien
Answered on January 9, 2021 4:09 pm
0
Private answer

And would you prefer QBTC or 3IQ?

Marked as spam
Posted by Connor Frank
Answered on January 9, 2021 3:55 pm