Ninepoint launches Canada's largest Bitcoin IPO of $230M

Cryptocurrency in `bottom of the first inning'

Canadian investment manager Ninepoint Partners LP completed a $230 million initial public offering, the country's largest new fund to be based on the cryptocurrency.

The IPO consisted of units sold at $12.762 (US$10) apiece, Ninepoint said in a statement. Bitcoin Trust began trading Wednesday on the Toronto Stock Exchange under the ticker BITC-U. Ninepoint's launch eclipsed that of fund manager CI Financial Corp., which completed a $72 million Bitcoin fund IPO in December.

“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,” John Wilson, Co-CEO and Managing Partner of Ninepoint, said in a statement.

Bitcoin has gained popularity as both a hedge against U.S. dollar weakness and a speculative vehicle for investors. It briefly dropped below US$30,000 Wednesday for the second time in a week after touching a high of US$40,858.59 on Jan. 9.

Ninepoint isn't concerned about current volatility in Bitcoin and is seeking to attract buyers who are attracted by the greater acceptance of cryptocurrency in the mainstream, according to Wilson, and managing director of the firm's digital asset group, Alex Tapscott.

Relative to other asset classes, Bitcoin is in the “bottom of the first inning,” Tapscott told Bloomberg. He said he expects greater interest as global institutions including fintech companies and large banks get involved.

The new fund will track the MVIS CryptoCompare Institutional Bitcoin Index.