Announcement Marks Industry’s First Smart Index for BTC and ETH Exchange-Listed Funds
Toronto, Ontario – (May 10, 2023) – 3iQ Digital Asset Management (“3iQ”) and Solactive AG (“Solactive”) are pleased to announce the launch of the Solactive SmartB BTC and Solactive SmartB ETH Indices. The innovative suite of Smart index strategies is designed for investors seeking risk-managed exposure to Bitcoin and Ethereum through publicly listed exchange-traded funds (ETFs).
Recently, 3iQ and Azzilon Systems Canada Inc. (“Azzilon”) partnered to design a suite of rules-based index strategies for Bitcoin and Ethereum powered by Azzilon’s SmartB Algorithm (press release). In today’s announcement, Solactive will manage the SmartB index methodology, which uses the 3iQ Bitcoin ETF (TSX: BTCQ, BTCQ.U) and the 3iQ Ether ETF (TSX: ETHQ, ETHQ.U) as proxies for Bitcoin and Ethereum.
The investment strategy’s objective is to generate positive alpha and enhanced risk-adjusted returns compared to conventional buy-and-hold strategies for Bitcoin and Ether by actively and systematically adjusting market risk exposure. During market downturns, the strategy emphasizes capital preservation by allocating funds to cash, without employing derivatives or leverage.
Based on back-tested data through May 5th, 2023, the Solactive SmartB BTC Index has generated 67.90%% since its inception on May 31st, 2021 with an annualized volatility of 30.13%, while the Solactive SmartB ETH Index has returned 75.85% since its start on June 7th, 2021 with an annualized volatility of 35.66%.
For more detailed information on each index please visit:
About 3iQ Digital Asset Management
Founded in 2012, 3iQ is one of the world’s leading digital asset investment fund managers. 3iQ was the first Canadian investment fund manager to offer a public bitcoin investment fund: The Bitcoin Fund (TSX: QBTC) (TSX: QBTC.U), and a public ether investment fund: The Ether Fund (TSX: QETH.UN) (TSX: QETH.U). More recently, 3iQ launched the 3iQ Bitcoin ETF (TSX: BTCQ) (TSX: BTCQ.U) and the 3iQ Ether ETF (TSX: ETHQ) (TSX: ETHQ.U). 3iQ offers investors convenient and familiar investment products to gain exposure to digital assets.
For more information about 3iQ:
Metaverse HQ: https://www.voxels.com/play?coords=S@203W,469N
About Azzilon Systems Canada, Inc.
Azzilon Systems Canada Inc., headquartered in Montreal, Canada, is the trusted provider of intelligent solutions for financial markets and its regulated participants. Founded in Singapore in 2017, Azzilon was created by experts in financial engineering and systematic trading. Its cutting edge, tailored solutions help their clients capitalize on equity market performance, combat inflation, and manage portfolio volatility – all powered by their proprietary SmartB technology.
Solactive is a leading provider of indexing, benchmarking, and calculation solutions for the global investment and trading community. Headquartered in Frankfurt and, with offices in Hong Kong, Toronto, Berlin, and Dresden, we innovate and disrupt the status quo as the partner of choice for our clients.The unique blend of our 280 staff’s expertise in data, data science, financial markets, and technology enables our clients’ continued success through the delivery of a superior experience, unique customization capabilities, and the best value for money available in the industry. With more than 25,000 indices calculated daily, we offer a full suite of solutions, including market leading ESG and thematic indices. As at January 2023, Solactive served approximately 500 clients across the world, with approximately US$250 billion invested in products linked to our indices. Solactive is registered with ESMA as a benchmark administrator and is supervised by the BaFin.
Ryan Graham, JConnelly
Julie Mercuro, JConnelly