The Tokyo-based Monex Group intends to further strengthen its digital asset offerings to institutional investors through the 3iQ acquisition.
Monex Group Inc, a holding financial company based in Japan with operations around the world, will acquire Canada-based crypto asset manager 3iQ Digital Holdings Inc for an undisclosed amount. According to the announcement, 3iQ will collaborate with Coincheck Inc, a Japanese cryptocurrency exchange with different products in the market that was acquired by Monex Group back in 2018 for about $33.4 million, to bolster the digital asset offerings focused on institutional investors. Additionally, the partnership will entail enhanced liquidity for the 1.8 million Coincheck customers already invested in the cryptocurrency industry.
Frederick T. Pye, Chairman and CEO of 3iQ, expressed his support for the groundbreaking initiative that is geared towards reshaping the web3 and digital assets industry. Moreover, 3iQ has specialized in tailored products for institutional investors seeking to tap into the cryptocurrency market.
“This partnership is not just about growth; it’s a thrilling leap towards realizing our dream. We’ve always been passionate about bringing regulated, innovative digital asset products to investors worldwide, and now, with Monex Group, we can turbocharge this mission,” Pye noted.
Similar sentiments were echoed by Yuko Seimei, the Chief Executive Officer of Monex Group, who insisted that the collaboration between the two entities will streamline the mass adoption of digital assets. Moreover, the Japanese government has already enacted notable clear crypto regulations to welcome international investors to tap into the local growing demand.
“Our long-term strategy is to strengthen our asset management business, and by welcoming 3iQ to our group, we aim to achieve high growth by capturing the crypto asset management needs of institutional investors and crypto asset exchanges around the world, which are expected to grow in the future,” Seimei noted.
Market Implications of the 3iQ Acquisition by Monex Group
The Monex Group was impressed by the fact that 3iQ’s Bitcoin and Ethereum exchange-traded funds (ETFs) on the Toronto Stock Exchange have significantly grown since their inception. Notably, the 3iQ Bitcoin ETF (TSX: BTCQ) traded around CA$ 9.11 on Friday, down approximately 2 percent in the last 24 hours. Nonetheless, the BTCQ fund has registered more than 124 percent gains year-to-date, following the impressive Bitcoin performance. Other notable funds offered by 3iQ include the 3iQ Ether Staking Fund and the 3iQ Global Cryptoasset Fund.
The acquisition of 3iQ will play a huge role in bolstering revenues for Monex Group and its stock market. Moreover, 3iQ has introduced more products – including the recently unveiled 3iQ Managed Account Platform (QMAP) – that are geared towards enabling the seamless adoption of digital assets by institutional investors. According to the latest market data, Monex Group stock has gained about 70 percent since the calendar flipped in January.
