Canadian Fund Manager Launches $180 Million Bitcoin Fund on Toronto Stock Exchange

Ninepoint Partners, a Canadian fund manager, has announced that it has completed the Initial Public Offering (IPO) for its Bitcoin Fund. 

The firm noted in a press release that it raised $180 million as gross profit from the fund’s sale to private investors, which was sold under three distinct categories Classes A, F, and S units. 

According to the announcement, a total of 7,318,276 units were issued for Class A, while 2,865,314 and 7,806,901 units were issued for Classes F and S, respectively. Regardless of the class, Ninepoint sold each unit for $10. 

Notably, Ninepoint added that it had listed its Class A shares on the Toronto stock exchange after receiving regulatory clearance from the Ontario Securities Commission (OSC) earlier this month. 

The Class A shares will commence trading in both the United States dollars (USD) and the Canadian dollars (CAD), under the ticker “BITC.U” and “BITC.UN,” respectively. 

Ninepoint is hoping to break into the Canadian market by offering an annual management fee of 0.7% of the fund’s net asset value.  

James Fox, Co-CEO and Managing Partner of Ninepoint, said; 

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.

Although this is not the first time a firm will launch a Bitcoin fund in Canada, this happened to be the largest of its kind to go live in the country. 

Last year, Coinfomania reported that Canadian investment fund manager 3iQ listed its Bitcoin fund on the Toronto Stock Exchange after raising $48 million from investors. 

Like 3iQ, Ninepoint has selected Gemini cryptocurrency exchange to provide custody for the fund. 

The United States Security and Exchange Commission’s stringent regulation that has resulted in its refusal to approve a Bitcoin Exchange-Traded Fund (ETF) has prompted firms to launch a different model in another location. 

Thanks to Grayscale Investments, firms have now gotten the idea of creating a Bitcoin trust dedicated to purchasing the asset and selling shares in that trust for a profit.