Bhutan's GMC Engages 3iQ to Manage Part of Bitcoin Treasury

Bhutan's planned Gelephu Mindfulness City (GMC) has disclosed a new approach for its bitcoin reserves. The city has selected digital asset firm 3iQ to manage part of its bitcoin treasury with a market-neutral strategy. This represents a shift from the original policy of holding the cryptocurrency solely as a national long-term asset.

The decision comes after news that GMC had pledged 10,000 BTC. By adopting a market-neutral position, 3iQ is expected to employ trading methods that aim to protect the holdings from major market swings, rather than simply relying on bitcoin's price appreciation. Further details about the management strategy, associated risks, and expected outcomes have not yet been fully revealed.

Officials have not stated if additional portions of Bhutan's bitcoin treasury will also be actively managed or if the rest continues to be held as a reserve. The initiative highlights evolving approaches to national digital asset management but leaves open questions about transparency and the long-term objectives for these reserves.