Following in Grayscale’s footsteps, Canada launches new Bitcoin trust fund

Canadian investment management firm Ninepoint Partners has launched trading of shares of the firm’s Bitcoin Trust on the Toronto Stock Exchange.

Ninepoint has completed the initial public offering of its Bitcoin Trust, raising 230 million Canadian dollars (about 180 million U.S. dollars), according to a statement. The investment company said it will issue 17,990,491 shares of three different fund classes at a price of $10, of which more than 7 million shares will be traded on the Toronto Stock Exchange under the symbols BITC.U and BITC.UN for U.S. and Canadian dollars, respectively.

John Wilson, co-CEO and managing partner of Ninepoint, called the move "the largest initial public offering of a bitcoin investment fund in Canada to date." The company said its Bitcoin Trust will charge 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 lowest management fees among Canada-listed bitcoin investment funds will be tailwinds in attracting continued investor interest,” Wilson said. “Through this IPO, we are laying the foundation for Digital Asset Group’s success and growth.”

Like Grayscale's crypto fund in the United States, Ninepoint said its goal is to expose new investors to digital currencies such as Bitcoin (BTC). The investment firm, which manages only a fraction of Grayscale's assets, said it would not consider selling shares of the trust in the United States. (Cointelegraph)