Ninepoint Partners has announced the launch of its Bitcoin Trust following a hugely successful CAD $230 ($180 million) initial public offering (IPO). The shares are now live on the Toronto Stock Exchange with ticker symbols “BIT.U” and “BIT.UN.
Ninepoint Unveils Bitcoin Trust
Despite the current more than 10 percent slump in the price of bitcoin (BTC) since attaining an all-time high of $42k, the confidence of institutional investors in the orange coin remains very high.
In the latest development, Ninepoint Partners, a Canadian firm that claims to be focused on offering investors unique alternative investment solutions, has launched a bitcoin trust, having successfully conducted a first-of-its-kind initial public offering that raised $180 million.
With Ninepoint Partners Bitcoin Trust now live on the Toronto Stock Exchange, at a price of $12.76 per share ($10) the firm hopes to offer investors exposure to bitcoin in a secure and hassle-free manner.
Commenting on the matter, John Wilson, CEO and Managing Partner of Ninepoint Partners said:
“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. We believe that our institutional-grade trust structure and low-cost management fee will be a winning combination for continued investor interest.”
Institutional Interest in Bitcoin Skyrocketing
It’s no news that the ravaging COVID-19 pandemic has triggered a serious financial crisis that has given digital currencies such as bitcoin an edge over traditional fiat currencies like the USD, as more and more institutional investors now recognize bitcoin’s potential as a real store of value.
Notably, some of the largest university endowment funds in the United States, including Harvard, Brown, Yale, the University of Michigan and others, are now seriously stacking up bitcoin and other cryptocurrencies.
Since last year, bitcoin funds have been putting smiles on the faces of their clients, thanks to the rising price of the underlying digital asset. According to reports, Grayscale’s asset under management (AUM ) skyrocketed to $20.2 billion in 2020, a 10x increase as compared to the previous year. In the same vein, Galaxy Digital reported an increase in the trade volume and profit of its cryptocurrency products in Q3 2020.
At press time, the combined market cap of the global crypto market sits at $936.98 billion, with bitcoin trading at $31,444, as seen on CoinMarketCap.