Canada’s Ninepoint Completes $180 Million IPO of Bitcoin Fund

News / 27.01.2021

The Canadian asset management firm, Ninepoint Partners, has recently raised a total of $180 million from investors in an Initial Public Offering (IPO) for its Bitcoin Trust Fund.

In an official press release published Wednesday, the firm revealed that it had received regulatory approval earlier this month and has officially listed its shares for the Fund on the Toronto Stock Exchange.

More Exposure

The Fund was created to help investors gain exposure to the world of cryptocurrencies, bitcoin precisely, without experiencing the troubles of buying, selling, and storing the digital assets on their own.

Ninepoint’s Bitcoin Fund seeks to offer its investors the lowest management fee for any Bitcoin investment vehicle in Canada at a rate of 0.7% per annum. Ninepoint believes that reducing the asset management fee can attract the interest of investors in the market.

Commenting on the success of the IPO, Ninepoint’s co-CEO and managing partner, John Wilson, said, 

We’re delighted with the success of this offering. It is the largest initial public offering of a bitcoin investment fund in Canada to date. We would like to thank all of our partners and in particular Canaccord Genuity Cormarketp. and INFOR Financial Inc. for their part in executing our first bitcoin offering.

By creating its Bitcoin Trust Fund, Ninepoint follows the leading digital assets management firm’s footsteps, Grayscale Investments, which pioneered the creation of Bitcoin Trust Funds.

Since regulators are still adamant about approving bitcoin exchange-traded funds (ETFs), crypto entities like Grayscale and Ninepoint have devised a means of offering bitcoin and other cryptocurrencies to investors on the stock market — Bitcoin Trust Funds.

Growing Competition

With the completion of its IPO, Ninepoint will now join other companies that are offering these products, including Bitwise 3IQ and, of course, Grayscale.

Although the competition may be tough, Ninepoint’s Managing Partner is convinced that it will continue to retain investors’ interests.

He added, “We believe our institutional quality trust structure and the lowest management fee of any listed bitcoin investment fund in Canada will be a winning combination for continued investor interest.”

Mandy Williams joined the crypto space in 2016, and since then she has been learning and writing about cryptocurrencies and blockchain technology.