Canadian investment firm, Ninepoint Partners has listed a Bitcoin trust fund on the Toronto Stock Exchange after an initial public offering (IPO) of CAD 230 million (around $180 million). This is the largest Bitcoin fund listed on the Canadian exchange so far.
Based in Toronto, Ninepoint Partners is one of the country’s largest alternative investment funds with around $7 billion in assets. It will act as the trustee and manager of the fund and is partnered with Gemini for Bitcoin custody.
The announcement detailed that the fund issued 7,318,276 Class A Units, 2,865,314 Class F Units and 7,806,901 Class S Units. Each unit is priced at $10.
Bitcoin trust funds are seen as an alternative to the much-sought exchange-traded funds. These funds make investments into the digital currency easier for non-tech savvy investors as they do not have to bother with wallets and private keys.
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However, these funds usually charge hefty management fees. Ninepoint detailed that it will charge an annual management fee of 0.7 percent on the net asset value.
“We believe our institutional quality trust structure and lowest management fee of any listed bitcoin investment fund in Canada will be a winning combination for continued investor interest,” Ninepoint Co-CEO and Managing Partner, James Fox said. “With this initial offering, we are laying the foundation for the success and growth of our Digital Asset Group.”
Apart from Ninepoint, other investment managers are also listing crypto trust funds on the Canadian exchange. 3iQ, a company already managing a Bitcoin fund, listed a similar trust fund with Ether raising $75 million last month.
In the United States, Grayscale is managing such trust funds with multiple digital currencies. However, Ninepoint clarified that the US-based investors might not be allowed to invest in its fund.