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.