Ninepoint Raises $180 Million to Allow Investors to Easily Buy Bitcoin

By Luigi Wewege Friday, January 29, 2021

The investment management company Ninepoint Partners has raised $180 million in a private funding round. The firm used the proceeds to launch a new bitcoin (BTC) fund on the Toronto Stock Exchange (TSX), powered by the MVIS CryptoCompare Institutional Bitcoin Index (MVIBTC).

Abstract image of bitcoin.

Funds Used to Buy Bitcoin

Ninepoint Partners’s new fund will enable cryptocurrency investors to gain exposure to BTC without being required to manage their private keys or understand the cryptocurrency’s public addresses.

The company’s co-CEO John Wilson said the funds have been immediately used to buy bitcoins.

“We arrange secure storage of the bitcoin and your percentage of the units you own in the total vehicle, you own that percentage of the total bitcoins,” Wilson told Bloomberg.

The BTC fund involves a yearly management fee of 0.7% and represents the latest in a group of cryptocurrency funds entering the market. It also represents Ninepoint’s another step into the sector of alternative investments that include funds aimed at real estate and precious metals.

The fund snatched total gross proceeds of around $180 million, or CAD$230 million, according to Wilson.

"We're delighted with the success of this offering. It is the largest initial public offering of a bitcoin investment fund in Canada to date,” Wilson said.

“We believe our institutional quality trust structure and a lowest management fee of any listed bitcoin investment fund in Canada will be a winning combination for continued investor interest. With this initial offering, we are laying the foundation for the success and growth of our Digital Asset Group.”

The fund’s primary objective is to offer fund unitholders exposure to bitcoin using a sophisticated platform that is cost-efficient and provides a safe and simple-to-use alternative to purchase and hold cryptocurrency assets.

The fund utilizes MVIBTC to obtain BTC price data, the company said in a press release. MVIS is a subsidiary of Van Eck Associates Corporation, a renowned investment management firm from New York.

The IPO was led by a syndicate of agents managed by Canaccord Genuity and INFOR Financial but also included other participants Echelon Wealth Partners, PI Financial, Richardson Wealth, Leede Jones Gable, Mackie Research Capital, and Sightline Wealth Management.

Summary

Investment company Ninepoint Partners raised $180 million in private funding, which it used to launch a fresh BTC fund that will provide cryptocurrency investors with exposure to the top cryptocurrencies.

About the Author


Headshot for author Luigi Wewege

Luigi Wewege is the Senior Vice President, and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an Instructor at the FinTech School which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of: The Digital Banking Revolution.

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