Investment firm Ninepoint Partners has raised $180 million (C$230 million) from private investors to launch a new Bitcoin Fund on the Toronto Stock Exchange (TSX), powered by the MVIS CryptoCompare Institutional Bitcoin Index (MVIBTC).
The new fund is set to allow investors to gain exposure to the flagship cryptocurrency, without having to manage their own private keys or even understand public bitcoin addresses. John Wilson, co-chief executive officer at Ninepoint Partners and a senior portfolio manager of the fund, told Bloomberg the funds are “immediately” used to purchase actual bitcoin.
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 [in the fund].
The fund comes with an annual management fee of 0.7% and is the latest in a series of crypto-focused funds hitting the markets. For Ninepoint Partners, the fund is the firm’s latest move into alternative investments that include funds dedicated to real estate and precious metals.
It uses the MVIS CryptoCompare Institutional Bitcoin Index (MVIBTC) to get its bitcoin price data, according to a press release shared with CryptoGlobe. Its investments objects are to provide unitholders with exposure to BTC through an “institutional-quality, cost-efficient platform, and to provide a secure, simpler and exchange-traded investment alternative for buying and holding Bitcoin.
Steven A. Schoenfeld, CEO of MV Index Solutions, said the firm is pleased to license the Institutional Bitcoin Index to Ninepoint and provide “their new fund with a transparent and reliable benchmark.” James Fox, co-CEO at Ninepoint, said the fund will be able to provide institutional and retail investors a better and more reliable way to gain exposure to BTC thanks to the index licensing.
The MVBTC Index, it’s worth noting, was launched on November 25, 2019 and is a “rules-based index which measures the performance of a digital assets portfolio that invests in Bitcoin priced from selected exchanges.” These exchanges include Binance, Bitflyuer, Bitstamp, Gemini, itBit, Kraken, and Coinbase.
Featured image via Pixabay.