3iQ to launch “smart beta” strategies for crypto

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.

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.