Canada-based investment firm Ninepoint Partners has listed a Bitcoin trust fund on the Toronto Stock Exchange after an initial public offering (IPO) of around $180 million (CAD 230 million). Ninepoint Partners is one of Canada’s largest alternative investment funds with $7 billion in assets. The investment company will act as the trustee and manager of the fund while US-based cryptocurrency firm Gemini will provide custody services for the funds. Ninepoint Bitcoin Fund Includes Annual Fee of Only 0.7% Ninepoint is the latest cryptocurrency fund to make its debut on public markets with an annual management fee of 0.7 percent. Meanwhile, Toronto-based 3iQ Corp. also launched a Bitcoin Fund, whose shares have climbed up by 39% since its debut in Oct 2020. The fund apparently issued 7,318,276 Class A Units, 2,865,314 Class F Units, and 7,806,901 Class S, with each unit priced at $10. Ninepoint follows the example of Grayscale in creating a trust for buying Bitcoin (or even other cryptocurrencies) and then selling the shares of that trust for a commission. In the announcement release, Ninepoint’s co-CEO and managing partner, James Fox, stated: “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. With this initial offering, we are laying the foundation for the success and growth of our Digital Asset Group.” Providing Exposure to Bitcoin Through Institutional-Quality Platform The objective of Ninepoint Bitcoin Fund involves providing unit holders of the fund with exposure to Bitcoin through an institutional-quality platform that is cost-efficient. It also intends to provide a secure, simple, and exchange-traded investment alternative for buying and holding Bitcoin. Bitcoin trust funds are seen as an alternative to exchange-traded funds. It gives the investors the ability to invest in bitcoin, without needing to actually hold the cryptocurrencies. This makes investments into digital currencies easier as investors do not have to deal with the technicalities such as wallets and private keys.
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