The latest reports highlighted that a new Bitcoin Trust firm has gone live on the Toronto Stock Exchange. Canadian-based investment manager “Ninepoint Partners” has made an official launch for its shares trading on the Canadian platform.
On January 27, Ninepoint Partners announced that it has completed an initial public offering (IPO) for its Bitcoin crypto trust initiative. This crypto trust has an estimated value of 230 million Canadian dollars which is equivalent to around $180 million US dollars. The firm further added that the distribution of units will be rolled out in three classes.
7 million units will be made available for trading on the Toronto Stock Exchange under the ticker symbols of BITC.U and BITC.UN for U.S. and Canadian dollars, respectively. An estimated 17,990,491 units will be available with each of them valued at $10.
According to John Wilson, Ninepoint CEO and managing partner, the move is the largest IPO of this kind in Canada to date. He further mentioned that the firm is anticipated to have an average annual management fee of nearly 0.70% of its net assets value. The fee will be calculated daily and then paid monthly.
Wilson explained:
“We believe our institutional quality trust structure and the lowest management fee of any listed Bitcoin trust investment fund in Canada will be a winning combination for continued investors’ interest. With this initial offering, we are laying the foundation for the success and the growth of our Digital Asset Group. ”
Ninepoint Partners Vs Grayscale
Ninepoint seems to operate just like Grayscale. Its main objective is to attract new investors to seed in digital currencies like Bitcoin. Interestingly, this move has come when Bitcoin needs more investors to reclaim its glory to set new record highs.
According to data analysis, Grayscale has approximately C$7 billion, which translates to $5.5 billion assets under management (AUM). Ninepoint said that it would not be exploring selling shares in the US to avoid engaging in stiff competition in its early stage.
