Canada-based investment manager Ninepoint Partners has started trading shares in the company’s Bitcoin Trust on the Toronto Stock Exchange.
According to today’s announcement, Ninepoint has completed an initial public offering (IPO) for its Bitcoin Trust for $ 230 million, or approximately $ 180 million. The investment firm announced that it will issue three different grades of 17,990,491 units priced at $ 10, of which more than 7 million will be available for trading on the Toronto Stock Exchange under the ticker symbols BITC.U and BITC.UN for the USA and BITC.UN are available in Canadian dollars.
John Wilson, co-CEO and managing partner of Ninepoint, described the move as “the largest ever IPO of a Bitcoin mutual fund in Canada”. The company announced that the trust would have an annual management fee of 0.70% of its net asset value, calculated daily and paid monthly.
“We believe our institutional quality trust structure and the lowest management fee of any publicly traded Bitcoin mutual fund in Canada will be a winning combination for the continued interest of investors,” said Wilsonsaid. “With this initial offer, we are laying the foundation for the success and growth of our digital asset group.”
Like Grayscale’s crypto funds in the US, Ninepoint said its goal is to expose new investors to digital currencies like Bitcoin (BTC). A fraction the size of grayscale with $ 7 billion in assets under management – $ 5.5 billion – the investment firm said it would not look into selling any shares in the trust in the US