3iQ to launch “smart beta” strategies for crypto

By James Langton | April 12, 2023 | Last updated on April 12, 2023
1 min read
Two golden coins - Bitcoin and Ethereum
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Fund manager 3iQ Digital Asset Management (3iQ), announced the planned launch of “smart beta” index strategies using major cryptoassets Bitcoin and Ethereum.

Toronto-based 3iQ said that it is teaming up with Montreal’s Azzilon Systems Canada Inc. to create a pair of smart index strategies using Azzilon’s SmartB engine — 3iQ SmartB BTC and 3iQ SmartB ETH — that aim to generate alpha and better risk-adjusted returns compared to traditional buy-and-hold strategies.

“Without using derivatives or leverage, [the strategies] adjusts investment exposure in response to market conditions, emphasizing capital preservation during market downturns by allocating to cash,” the firms said in a release.

“We are confident that our SmartB engine, combined with 3iQ’s expertise in digital asset management, will create a strong synergy that enables institutional investors to successfully navigate the complex world of cryptocurrencies and achieve superior returns,” Azzilon CEO Pierre McMaster said in a release.

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James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.