Bhutan's Gelephu Mindfulness City (GMC) has engaged Canadian digital asset manager 3iQ to oversee part of its bitcoin treasury on a market-neutral basis. The move marks a shift from the city's previous strategy of holding the cryptocurrency as a long-term national asset.
The mandate
3iQ will manage a portion of GMC's bitcoin holdings using a market-neutral approach. That typically means offsetting long positions with short positions or other hedges to reduce exposure to price swings. The exact size of the allocation hasn't been disclosed.
Why the change
GMC had previously held bitcoin as a long-term reserve asset, similar to other sovereign entities that added digital assets to their treasuries. The engagement with 3iQ represents a departure from that passive approach. The city hasn't explained the reasoning publicly.
GMC has not provided a timeline for the mandate or indicated whether it plans to expand the strategy to other digital assets. The city's treasury team is expected to evaluate the market-neutral approach's performance before considering further allocations. No further details on duration or targets have been released.
