TORONTO – Ninepoint Partners LP (“Ninepoint”) announced today that Bitcoin Trust (the “Fund”) was over 99% invested on its first day of trading, January 27, 2021, at an average cost per unit of Bitcoin of US$30,888.84. The Fund’s Class A Units trade in both US dollars and Canadian dollars on the Toronto Stock Exchange under the symbols “BITC.U” and “BITC.UN”, respectively.
“We’re pleased with our early success,” said John Wilson, Co-CEO and Managing Partner of Ninepoint. “This speaks to the way we designed this Fund: offering the lowest management fee for a listed Bitcoin investment fund in Canada and structuring the Fund to better serve retail and institutional investors who would like to participate in this emerging asset class.”
“We are still in the early innings of widespread institutional and retail adoption of Bitcoin as a store of value and alternative to gold in a portfolio. This initial strong interest is very encouraging and bodes well for the future,” commented Alex Tapscott, Managing Director of Ninepoint’s Digital Asset Group.
The Fund’s investment objectives are to seek to provide holders of units (“Unitholders”) of the Fund with exposure to digital currency bitcoin (“Bitcoin”) through an institutional-quality platform that is cost-efficient to Unitholders and to provide a secure, simpler and exchange-traded investment alternative for buying and holding Bitcoin.
Investment Strategies and Fund Highlights
The Fund intends to achieve its investment objectives by investing directly in Bitcoin while using high quality service providers, including digital asset trading counterparties, trading platforms and custodians, and independent auditors, legal and valuation agents, in order to manage the assets of the Fund. By having in-house expertise, through Ninepoint’s recently formed Digital Asset Group, Ninepoint expects to offer a cost-efficient structure to Unitholders for ongoing management fees.
Ninepoint believes that the Fund has the lowest management fee structure for a listed Bitcoin vehicle in Canada. An annual management fee of 0.70% of the Fund’s net asset value, calculated daily and payable monthly in arrears, plus applicable taxes, will be paid to Ninepoint in respect of each of the Class A Units, the Class F Units and the Class S Units of the Fund.
The Fund’s Bitcoin is valued based on the MVIS CryptoCompare Institutional Bitcoin Index maintained by MV Index Solutions GmbH (“MVIS”), or a successor or alternative institutional-quality index. MVIS is a wholly-owned subsidiary of Van Eck Associates Corporation, a large, long-standing, and well-regarded financial services firm.
Ninepoint acts as trustee and manager of the Fund.
The Units have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States, and may not be offered or sold, directly or indirectly, in the United States (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable securities laws of any state of the United States or in reliance on an exemption from such registration requirements. This news release does not constitute an offer to sell, or a solicitation of an offer to buy any of the securities set out herein in the United States.
About Ninepoint Partners LP
Based in Toronto, Ninepoint Partners is one of Canada’s leading alternative investment management firms overseeing approximately $7 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies including North American Equity, Global Equity, Real Assets & Alternative Income. Ninepoint Digital Asset Group is a division of Ninepoint Partners.
Wealth Matters Consulting
Mary Victoria Falzarano