3IQ Trading a Premium to BTC

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Hi, There – Thank you for covering Bitcoins today. I hold bitcoins through coinbase and I have been contemplating an investment in QBTC from 3IQ. But what concerns me is the premium at which QBTC trades when compared to the underlying asset and also it’s a close-ended fund. What is your taken on this?

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Asked on December 2, 2020 12:07 pm
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Hi there,

QBTC is in its very early stages, but the intent of the fund is to track the daily price of bitcoin. If you overlay the QBTC and Bitcoin charts on top of each other, you'll see that they track quite closely. As with any ETF, since there are fees and overhead, it likely will not be a perfect 1 to 1 match. My understanding is that the funds are backed by actual Bitcoin. So as new issues are made, that money is reinvested directly into Bitcoin.

I prefer holding the actual coin itself, but QBTC is certainly an easy way for investors to gain exposure and would be no different than a fund tracking the price of gold. I am currently in conversations with someone who is doing a Q&A with 3iQ and look forward to some of the responses and will share any new information i come across.

Mat

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Posted by Mathieu Litalien
Answered on December 2, 2020 12:19 pm