Canadian investment firm Ninepoint Partners has wrapped up a $230 mln initial public offering for its Bitcoin Trust.
Following in the footsteps of Grayscale Investments and its massively popular Bitcoin Trust, Ninepoint Partners has raised a large amount of capital through the IPO and stocks in the Trust have begun trading on the Toronto Stock Exchange.
The Fund will give investors that hold shares in the trust indirect exposure to Bitcoin through an institutional grade firm. Ninepoint described the fund as a secure and simple exchange-traded investment alternative for investors that do not want to physically hold cryptocurrencies.
Biggest IPO for Bitcoin fund in Canada
Ninepoint’s co-CEO John Wilson said that the IPO was the largest offering for a Bitcoin investment fund in Canada in history. The fund will directly buy Bitcoin through various cryptocurrency trading platforms and will manage the fund with the help of independent auditors and legal and valuation agents.
Ninepoint is also touting that it has the lowest management fee for a Bitcoin investment fund in Canada. The Fund’s Bitcoin will be valued based on the MVIS CryptoCompare Institutional Bitcoin Index which is managed by a subsidiary of renowned financial services firm Van Eck Associates.
The firm also noted that the shares have not been registered in the United States and noted that it did not have plans to do so. Ninepoint manages over $7bln of assets and offers diverse and alternative investment products.
Grayscale Bitcoin Trust has led the charge
American firm Grayscale Investments has blazed the trail for cryptocurrency trusts and the success of its various funds cannot be understated.
Grayscale released its final quarterly report for 2020, highlighting its prolific Bitcoin acquisition which outpaced the rate in which miners could mint new BTC. Bitcoin inflows surged as high as 194% of BTC mined in the final quarter of 2020. Grayscale noted that the metric illustrated the massive demand for Bitcoin versus the supply in the market over the past four months.
The Grayscale Bitcoin Trust became one of the fastest growing investment products in the world in 2020, growing from $1.8 billion to $17.5 billion AUM.