Bitcoin in the hands of a child. The boy holds a metal coin of crypto currency in his hands.

Toronto-based 3iQ Corp. has filed a preliminary prospectus to list The Bitcoin Fund. 

The filing is for an initial public offering of Class A and Class F units of a closed-end investment fund at a price of US$10 per unit. If approved, it would mark the world’s first Bitcoin fund available to mainstream investors.

The OSC cleared the way for crypto-based investments earlier this month when it approved the 3iQ fund.

Back in February, the Ontario Securities Commission refused to approve the proposed fund’s prospectus, paving the way for a full hearing for the OSC to consider whether a regulated fund could invest primarily in the fledgling crypto sector. The OSC panel sided with 3iQ.

Until now, investors seeking exposure to Bitcoin have had to trade it directly through unregulated cryptoasset platforms, via the exempt market or through back-door listings in the venture markets.

The OSC ruling noted that there are fundamental differences between ETFs and 3iQ’s fund. Because the 3iQ fund will be a non-redeemable investment fund, it will require only monthly price reporting and be subject to annual redemptions. Conversely, ETFs require constant trading, which could make a Bitcoin ETF more vulnerable to the sort of market manipulation that appears to be happening in existing Bitcoin markets.

The fund’s offering is being led by Toronto-based Canaccord Genuity Corp.