The firm has debuted a new bitcoin ETF and is introducing a new liquid-alt offering for fixed income investors
Ninepoint has officially converted units of its cryptocurrency-based closed-end investment fund, the Bitcoin Trust, into the Ninepoint Bitcoin ETF. The conversion was done on a one-to-one basis, with each unit of the Bitcoin Trust being converted into one unit of the new ETF.
The TSX ticker symbols previously used for the Bitcoin Trust have been preserved for use with the new ETF. The bitcoin ETF will trade under the symbol BITC for Canadian dollar-denominated units, and BITC.U for U.S. dollar units.
“In keeping with our commitment to investors to help them better diversify their portfolios,” said Ninepoint CEO and co-Managing Partner John Wilson. “Today we’re providing investors with an easier, more liquid way to invest in bitcoin that more efficiently tracks the underlying bitcoin price.”
Along with the conversion, Ninepoint has also decided on a change in indexes. From the MVIS CryptoCompare Institutional Bitcoin Index (MVIBTC) previously used for the Bitcoin Trust, it has assigned the MVIS CryptoCompare Bitcoin Benchmark Rate Index (MVIBBR) as the standard to value the ETF’s Bitcoin holdings.
The new benchmark uses the top five rated bitcoin trading platforms, as reviewed and rated by MVIS’ CryptoCompare Benchmark Rating. Ninepoint believes that MVIBBR allows for investors to have more transparent tracking of the U.S. dollar price of bitcoin, and is more efficient administratively. Maintained by a well-regarded financial services firm, MVIBBR is considered in the market to be among the primary and reliable indexes to track the U.S. dollar price of bitcoin.
Ninepoint has also announced a new addition to its liquid-alternative product lineup.
Expected to launch on Monday, May 10, the Ninepoint Alternative Credit Opportunities Fund seeks to provide income and capital appreciation primarily through investments in a variety of Canadian, U.S., and international fixed-income securities – including convertible bonds, preferred shares, and structured notes – for short-term and long-term gain.
It will also use derivatives, which may introduce leverage into the fund, and may borrow cash and engage in short selling. The fund’s exposure to short selling, cash borrowing, and derivatives will not exceed 300% of its net asset value, calculated on a daily basis.
“We are thrilled to be launching a differentiated fixed income alternative that employs more trading strategies and has increased flexibility in asset selection, within the parameters of the liquid alternative class,” said James Fox, co-CEO and managing partner at Ninepoint. “The goal for our Fund is to be a fixed income alternative that fully utilizes all the strategies and assets available to us.”