The Bitcoin Fund Review (Buy, Sell, or Hold)

The Bitcoin Fund was a project of 3iQ Corp. 3iQ Corp. completed a $48 million offering in the BTC Fund. The stock got listed, and boom, it came onto the scene. The stock symbol is QBTC.

The initial offering price was $10.85. Now, you are probably wondering, “Isn’t the name Bitcoin synonymous with crypto?” Yeah, it is. BTC is similar to the crypto world.

However, BTC Fund is a digital currency asset. It measures the daily price fluctuation of USD concerningterribleC. So, there’s a difference. When it appeared, the BTC Fund had A and F units.

For those who are curious, A and F are units of partnership. Here the general partner is the BTC Fund. There’s some news on Class A units, so I’ll mention it later.

What’s 3iQ Corp anyway?

3iQ Corp, founded in 2012, develops financial products for crypto. It acts as a fund and a portfolio manager. It is the largest DAM in Canada. DAM stands for digital asset manager.

3iQ was the first firm to provide Bitcoin investment for Canadians. Through the Bitcoin Fund and Ether Fund, 3iQ made life simpler. It allowed investors to invest in BTC and ETH through investment funds.

In 2021, 3iQ launched BTC ETF and ETH ETF. Both surfaced on TSX. 3iQ has certainly made investments in digital assets more accessible. Ok, I am coming back to the Bitcoin Fund.

When 3iQ Corp. announced the Bitcoin Fund, it provided clear objectives. The company said that they want to provide investment opportunities. As we know how the price of BTC is skyrocketing, the BTC Fund is a reasonable option.

It allows you to gain from the moves of the stock. So, you can invest for the long-term and make some cool bucks in the process.

No country for Bitcoin Fund

When the statement of BTC Fund first popped up, some words were in bold type. These words were that the BTC Fund is not available in the US. So, why does the US limit the BTC Fund? The reason is that the US SEC Commission didn’t allow it.

It has shut down several applications before. And in 2021, SEC denied applications from Wilshire Phoenix. Here’s a fun fact: although the BTC Fund is trading on TSX, it is denominated in USD. Here’s another fact: several US investors were involved in the Fund’s creation. So, the QBTC isn’t for US investors.

3iQ held a press conference in July 2021, announcing the program. The program allows the BTC Fund to publicize A units. According to the program, these have an approximate price of $20 million. These units will allow the public to invest.

These units have a set price, appearing at the usual price. 3iQ Corp. will perform the sale through Canadian exchanges. The ATM program‘s volume and distribution depend on the manager’s decision. So, when’s the program coming?

The ATM program is launching on December 5, 2022. The funds 3iQ allocates will be used for Bitcoin investment goals and strategies. The good thing is sales of Class A units began on July 9 this year. These sales began according to the terms of the agreement.

Ok, I will now throw out some legal jargon, so buckle up. The sales of units will happen according to Canada’s National Instrument law. National Instrument 44-102 defines at-the-market sales. It also mentions how companies can make their sales on TSX.

And not just TSX, any exchange where Class A units occur. When talking about sales, price movements are part and parcel. As Class A units fluctuate according to market prices, their value can vary.

The ATM program is an addition to the QBTC shelf prospectus. We saw the announcement in November 2020.

Bitcoin Fund has a market capitalization of $886.5 million. The amount of volume QBTC is getting on the TSX is 1,100. QBTC has a current stock price of $80.15. The number of QBTC shares traded so far is 13.82 million.

The earnings per share are $24.11. Meanwhile, the P/E ratio is 2.63. BTC Fund YTD (year-to-date) returns are 67.99.

To understand better, here’s a detailed chart:

As I mentioned earlier, when QBTC appeared on TSX, its price was $11.11.On the first day, its price hit a low of $10.85 and a high of $11.51. The next day, the stock went way up, reaching $14.24.

That’s a massive increase from the previous day. The stock’s first blow came on April 21 and then on June 19. August 17 was the most adventurous day for QBTC.

Its price went up to $18.65. Afterward, the stock plummeted. Here’s another chart:

Fast forward to January 8, 2021, and QBTC hit an all-time high of $71.95. That was a big increase. I mean, the stock hadn’t completed one full year, and it gained so much in value. The next high came on April 14, with the price touching $89.50.

You can see that the price dropped significantly afterward and touched a low of $43. Fast-forward to October 21, and we have a price level close to April 14. And now the stock is trading at $80.15.

I wanted to show you these price levels because it’s helpful for future price predictions. In less than two years, QBTC went from $11.10 to $80.15. So, I’m saying that it has a solid potential to move upwards. Why?

It’s because moving averages (MAs) suggest an upward trend. MAs are one of the critical indicators for finding the direction of a stock. The long-term MA suggests the long-term trend of a stock.

If the price is below MA, it’s a negative trend. On the flip side, it’s a bullish sign if the price is above MA. So, when you look at this stock’s 52-week MA, you see that the price is still way above the MA.

So, what is it for QBTC; buy, sell, or hold? There are three ways to answer this question, each explaining every scenario. If you want to buy, you should wait for a dip.

If you want to sell, wait for further upward movement. If you want to hold, it presents an excellent opportunity for the long term. No one is sure about the market movements.

So, you need to adjust and tweak your strategy according to market conditions. QBTC will go up. But it’ll throw a few dips before reaching its highest levels.

What is the ticker symbol for Bitcoin Fund?

The ticker symbol for Bitcoin Fund is QBTC.

Should I invest in QBTC?

QBTC is a long-term investment.

If you are looking for quick profits, that will not happen.

Is QBTC trending?

Its massive price increase since launch suggests QBTC is a trending stock.

Should I buy QBTC?

Yes, QBTC is a good buy stock.

Bottom line

If you woke up today looking for a stock to invest in, then it’s your lucky day. QBTC provides a great long-term investment opportunity. Remember that markets don’t always move according to what you and I think.

So, properly analyze everything before jumping in. Finally, don’t forget to read our article, How Long Does It Take to Get One Bitcoin?