A New $180M Bitcoin Trust Just Hit the Toronto Stock Exchange A New $180M Bitcoin Trust Just Hit the Toronto Stock Exchange


A New $180M Bitcoin Trust Just Hit the Toronto Stock Exchange

updated on:28 Jan 2021

A New $180M Bitcoin Trust Just Hit the Toronto Stock Exchange
Toronto-based investment firm, Ninepoint Partners, raised $230 CAD ($180 USD) in an IPO for a Bitcoin trust.
It's the largest raise of its kind to date.
The trust was today listed on the Toronto Stock Exchange.
A new Bitcoin trust was today listed on the Toronto Stock Exchange. Investment firm Ninepoint Partners launched the fund after raising $230 CAD ($180 USD) in an Initial Public Offering (IPO)—the largest amount raised for a Bitcoin trust in Canada to date. Crypto exchange Gemini will be the custodian. 

The trust will work like other cryptocurrency trusts—such as those provided by leading asset management firm Grayscale—by allowing people to invest in Bitcoin without actually having to buy and store the cryptocurrency. 

But trusts differ from the highly sought after Bitcoin ETF, or exchange traded fund—which still doesn’t exist in the US or Canada. Ninepoint’s trust allows investors to buy shares in a trust. An ETF allows investors to invest in a fund that directly tracks the price of Bitcoin. 

From an investor’s point of view, potential downsides to these sorts of crypto trusts are that they can come with high premiums in order for the institution to make a profit. Nevertheless, trusts like these are proving popular with traditional investors who perhaps may not be as tech-savvy as those in the cryptocurrency world but still want a piece of an asset that has surged in value by over 250% in the past year. 

With a trust like Ninepoint’s, investors do not have to worry about Bitcoin wallets, private keys, and where to buy the asset—they simply buy shares that represent the cryptocurrency. Ninepoint is the company that buys the cryptocurrency and stores it. 
“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,”  John Wilson, Co-CEO and Managing Partner of Ninepoint, said in a statement released today. 

The firm is the latest Canadian company to have Bitcoin shares listed on the Toronto Stock Exchange. 3iQ was the first, when it launched last year. And just last month it launched an Ethereum fund after raising $75 million. 

Share this Blog with your friends


No Comments

Suggested Content

Bitcoin 'Doesn’t Fulfill Basic Properties of Money': ECB Board Member

updated on:10 Apr 2021

Isabel Schnabel, Member of the Executive Board of the European Central Bank (ECB), has described Bit

Continue Reading

Bitcoin ETF Approval Will Happen: Morgan Creek’s Mark Yusko

updated on:9 Apr 2021

Morgan Creek Capital Management CEO Mark Yusko has expressed his confidence that a Bitcoin ETF will

Continue Reading

Ukrainian Officials Own $2.67 Billion in Bitcoin: Report

updated on:9 Apr 2021

Civil servants and officials in Ukraine are holding a significant amount of Bitcoin (BTC) and other

Continue Reading

JP Morgan's Jaime Dimon: Bitcoin Regulation a ‘Serious Emerging Issue’

updated on:8 Apr 2021

The legal and regulatory status of Bitcoin and other cryptocurrencies is something that needs to be

Continue Reading

Bitcoin Toys With $60k, BNB Hits All-Time High and Ethereum Creeps Past $2,000

updated on:3 Apr 2021

It’s all systems go for the crypto market.  Binance Coin hit a new all-time high of $3

Continue Reading