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"These developments are creating entirely new investment opportunities’"

Christophe Racine
3iQ Digital Assets Global Head DACH Region

 

3iQ has been a member of ÍøÆØ³Ô¹Ï since the beginning of this year. What role will Switzerland play in 3iQ's long-term strategy?

Since our founding in Canada in 2012, 3iQ has built a strong global track record as a leading alternative digital asset manager through innovation, institutional expertise, and continuous innovation. Around ten years ago, we launched the first Bitcoin and Ethereum ETP listed on the Toronto stock exchange, and subsequently integrated staking into its Ethereum and Solana ETPs boosting investor returns. 3iQ has since launched several other regulated ETPs. We also launched the world's first Digital Assets Managed Account Platform (QMAP), a hedge fund investment solution, offering innovative institutional quality, risk-managed investment solutions to gain exposure to digital assets. Switzerland is a logical focus in our long-term strategy. The country has been at the forefront of digital asset regulation and provides a combination of regulatory clarity, a global financial sector, and an innovation-friendly environment. These characteristics make Switzerland one of the most attractive locations globally for institutional digital asset management. Our institutional clients understand the attractive risk-return characteristics of digital assets but expect operational risks to be minimized. With QMAP, we have created a platform that addresses precisely these requirements by providing institutional-grade infrastructure, governance, and operational efficiency.

Digital assets have evolved from a niche investment into an increasingly accepted institutional asset class. Which developments make you particularly optimistic?

The transformation over the past few years has been remarkable. We are witnessing a fundamental shift in both market structure and regulation. Established asset managers are entering the space and launching innovative investment solutions that create tangible value for investors. Earlier this year, Dynamic, a division of 1832 Asset Management L.P (part of Scotia Bank) in Canada, announced the appointment of 3iQ as sub-advisor to the Dynamic Active Multi-Crypto ETF a liquid alternative fund that will be listed on Cboe Canada Inc. DXMC offers Canadian investors a simplified, actively managed gateway to a range of crypto assets. DXMC is one of many examples of that evolution: an actively managed ETF designed to provide diversified exposure to selected crypto assets, as well as companies that may benefit from the development or adoption of blockchain and related digital asset technologies. Digital assets are no longer the exclusive domain of technology enthusiasts. Today, we see growing demand from Sovereign Wealth Funds, family offices, private banks, insurance companies, institutional asset managers, and other professional investors. Equally encouraging is the rapid professionalization of the ecosystem. Institutional investors now have access to regulated custody solutions, professional trading infrastructure, independent fund administrators, transparent governance frameworks, and robust risk management processes. Switzerland continues to play a leading international role. Thanks to its innovation-friendly regulatory framework and strong financial industry, it has developed a highly competitive digital asset ecosystem that provides model conditions for institutional investors. The challenge now is to maintain and further strengthen this competitive advantage to reinforce Switzerland's position as a leading global asset management hub.

Despite this progress, reservations about digital assets still exist. What do you see as the biggest obstacles to broader adoption within asset management?

I believe one of the main challenges is education and the willingness to engage with the asset class objectively. Many institutions are still at an early stage of understanding how digital assets can be integrated into professionally managed portfolios beyond simple buy-and-hold strategies. Thanks to our global presence, we observe significant regional differences. While North America and parts of Asia have seen rapid institutional adoption, Europe remains somewhat more cautious. At the same time, investor demand continues to grow. A recent Swiss study from the University of Lucerne in cooperation with Luzerner Kantonalbank, showed that nearly one in five Swiss residents already owns or has invested in digital assets. This growing client demand will increasingly encourage financial institutions to expand their digital asset offerings.

Switzerland is widely regarded as one of the world's leading hubs for blockchain and digital asset innovation. How do you assess the willingness of Swiss investors and financial institutions to integrate digital assets into their portfolios?

We clearly see a growing openness across the Swiss market. A few years ago, discussions around digital asset investment strategies, particularly hedge fund solutions, were often met with hesitation. Today, the conversation has changed significantly. Financial institutions actively approach us to discuss strategic partnerships, product development, and knowledge transfer. This increasing openness is driven not only by greater public awareness but also by rising demand from both institutional and private clients, who are asking their banks, family offices, and asset managers for professional digital asset investment solutions. As a global specialist, we are able to support these institutions by providing tailored investment solutions and sharing international best practices.

Which digital assets or investment themes are currently attracting the strongest interest from institutional and professional investors, and what is driving this demand?

In addition to established Bitcoin and Ethereum investment solutions, we are currently seeing particularly strong demand for risk managed outcome related solutions like market-neutral and convex investment strategies. We are especially proud that last year we entered into a strategic partnership with Further Asset Management, a UAE based digital asset investment manager for the launch of a new sovereign backed market-neutral digital asset fund, where 3iQ was selected as both Sub-Advisor and strategic digital asset partner. One of the anchor investors, a large UAE based family office, invested in the BTC share class to put their bitcoin holdings to productive use within a regulated wrapper. This is an increasingly popular theme among holders of BTC. Beyond Bitcoin, institutional interest is increasingly expanding towards Ethereum, staking strategies, tokenized real-world assets (RWAs), stablecoins, and actively managed digital asset portfolios. These developments are creating entirely new investment opportunities. We believe we are no longer witnessing a short-term market trend but rather the early stages of a fundamental transformation of global capital markets.

3iQ is expanding its presence in Switzerland and across the DACH region. Where do you stand today, and what are your priorities for future growth?

Switzerland and the broader European market represent key strategic priorities for 3iQ. For example, we have submitted an application for a FINMA license which is currently being evaluated by the regulator. Wherever we operate globally, we strive to become an active contributor to the local financial ecosystem. That is why we are particularly proud to have become a member of ÍøÆØ³Ô¹Ï this year. Equally important is maintaining a strong regulatory culture through licensing and close cooperation with local supervisory authorities. Thanks to our long-standing experience, we can offer solutions that address the specific needs of local institutional investors, whether they are seeking beta-oriented exposure or actively managed alpha strategies. At the same time, we are pleased to bring global insights and innovation from other regions into Switzerland and Europe, sharing our expertise with clients as well as industry organizations such as ÍøÆسԹÏ.

Looking five years ahead, what role will digital assets play in diversified portfolios, and which developments will shape the industry most?

I am convinced that within the next five to ten years, digital assets will become a standard component of diversified institutional portfolios. 3iQ continues to build on our long tradition of innovation by constantly exploring new opportunities in DeFi next gen solutions and Tokenisation of Real-World Assets. Beyond their return potential, digital assets offer attractive diversification benefits due to their portfolio correlation characteristics. As institutional investors increasingly focus on portfolio construction rather than individual asset classes, this will become even more relevant. Several structural trends will drive this evolution. Client demand is expected to continue to grow, supported by macroeconomic factors such as inflation and fiscal expansion. Technological innovation—particularly the tokenization of financial assets—will fundamentally reshape capital markets. At the same time, regulatory clarity in Switzerland and the ongoing harmonization of European regulation through MiCA will provide greater certainty for institutional investors. Combined with institutional-grade infrastructure, including regulated custody solutions, professional trading platforms, and experienced asset managers, these developments will further accelerate the adoption of digital assets across the investment industry.