Monex Group Bets Big on Crypto with 3iQ Acquisition and QMAP Investment

The Tokyo-based financial services company Monex Group has completed its acquisition of a majority stake in 3iQ Digital Holdings, a Canadian crypto asset manager. The acquisition, initially announced in December 2023, has resulted in 3iQ and its subsidiaries becoming part of the Monex Group.

Monex Group Acquires Majority Stake in Canadian Crypto Asset Manager 3iQ

To support 3iQ's rapid business expansion, Monex Group has also invested $7.5 million in 3iQ's Managed Account Platform (QMAP). QMAP offers institutional investors access to a diverse range of crypto hedge funds, featuring alpha-oriented strategies tailored to meet the complex demands of global institutions. This investment significantly strengthens 3iQ's institutional digital asset management position.

The company was the first to launch a Bitcoin fund on the Toronto Stock Exchange in Canada. It further assisted CoinShares in creating a cryptocurrency ETF. Now, it will expand its crypto services under the Monex umbrella.

QMAP employs a stringent due diligence process to select fund managers with proven track records of generating alpha and effectively managing risks across various market cycles. These managers bring institutional backgrounds, specialized expertise, and operational excellence to the table.

"I have high [hopes] that QMAP will quickly become the leading platform for sophisticated investors to invest in a diversified suite of crypto hedge funds,” Yuko Seimei, the CEO of Monex Group, stated.

The platform's managed account structure allows 3iQ direct control over assets, enhancing transparency and risk management capabilities. This approach eliminates the extra layer of fees typically found in traditional fund-of-funds structures, enabling investors to customize their allocations or choose from pre-designed model portfolios at no additional cost.

“Together with Monex, we aim to create a superior investor experience that sets new standards globally,” added Pascal St. Jean, the President of 3iQ. "With a seasoned team, we remain committed to upholding our firm's decade-long tradition of developing cutting-edge investment solutions for institutional investors.”

The acquisition of 3iQ and investment in QMAP align with Monex Group's goal of strengthening its asset management business. Recently, the company has expanded its operations in the APAC region, planning to increase employment in the sales department by 80%.