As many who own these two funds may know, because of the new bitcoin ETF, BTCC, the market price of QBTC and QETH dropped below the Net Asset Value (NAV), while Bitcoin and Ethereum continue their upward trend.
According to 3iQ (The company that manage these funds)'s prospectus, investors have the ability to redeem the funds to USD at the price of the net asset value every year following the first business day after June 15. This year that date was set to be on June 16.
This is very important because in the event that the market price of both funds continue to decline, having the ability to withdraw the NAV portion acts as a safety net. However, one of the requirements is that investors must submit said redemption request via their CDS participant, which is the broker. Unfortunately, Wealthsimple is not a CDS participant according to the the CDS website. After talking to one of the wealthsimple agents, the answer is the same - Wealthsimple does not support the NAV redemption.
My question is, how is Wealthsimple going to support its investors in the future? How can a brokerage firm allow the buying of said securities but fail to take any responsibility in providing ample recourses for the redemption policy set by 3iQ? Both funds should not be made available in the first place.
I hope weathsimple can share their view on this, as a lot of people expect wealthsimple to provide such services like its competitor Questrade.
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