Alt Thinking April 30, 2025
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Ninepoint Crypto and AI Leaders ETF

Ninepoint Crypto and AI Leaders ETF April 2025
Investment Team
  • Alex Tapscott, CFA
    Managing Director, Digital Asset Group, Portfolio Manager
    Alex Tapscott, CFA
    Managing Director, Digital Asset Group, Portfolio Manager
    Mr Tapscott is an entrepreneur, business author, and seasoned capital markets professional focused on the impact of emerging technologies, such as blockchain and cryptocurrencies, on business, government, and society. His latest book, Web3: Charting the Internet’s Next Economic and Cultural Frontier (Harper Collins), was published September 19th, 2023. Alex is also the Managing Director of the Digital Assets Group at Ninepoint Partners, one of Canada’s leading investment firms, with more than...
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Key Takeaways
  • Big Tech earnings boost market confidence: Despite tariff concerns, strong earnings from Microsoft, Meta, and others suggest the AI boom is still driving growth. Heavy capital expenditures in data centers from these companies have positively impacted NVIDIA, easing concerns about the necessity of high-end chips for AI models.
  • Canada leads in Solana ETFs: On April 16th, Canada became the first country in the world to launch Solana ETFs, which have already reached a combined $150 million CAD in assets under management. Unlike in the U.S., Canadian Solana ETFs allow staking, with up to 50% of the portfolio eligible for staking.

Well, that was a fun month. Despite wild gyrations in markets and mounting concerns about tariffs, de-dollarization, Fed independence, and recession risks, stock markets closed out April…flat. In fact, the tech heavy NASDAQ was up modestly, while Bitcoin climbed 10%.

The Ninepoint Crypto and AI Leaders ETF finished the month up net 5.21% as of April 30, 2025. 

Ninepoint Crypto And Ai Leaders ETF - Compounded Returns¹ As of April 30, 2025 (Series ETF CAD- TKN) | Inception Date: January 27, 2021

1M

YTD

3M

6M

1YR

3YR

Inception

Fund

5.21

-21.87

-26.12

-1.34

6.64

8.88

9.81

Meanwhile, earnings from Microsoft, Meta and others are boosting the mood in the broader market, suggesting that tariffs are not yet impacting the market’s star performers and easing concerns that the AI trend is slowing down. To wit, both META and Microsoft projected large capex spends on datacenters, giving a jolt to NVIDIA, which has been under pressure since the DeepSeek announcement in February that threw into question whether billions in chips were needed to power cutting-edge AI models. Recent news of thawing trade tensions with China and the potential lifting of export bans on chips is also boosting the mood

We recently wrote a piece asking, “Will April tariff showers bring May Crypto flowers?” arguing that regulatory tailwinds and growing business adoption of crypto and the web3 toolkit could propel markets ever higher.

Well, in one corner of the market – crypto ETFs – the message is clearly “Let 100 flowers bloom!”

There are now 72 crypto-related ETF filings awaiting SEC approval (Bloomberg). Bloomberg thinks the odds of several of them – such as Litecoin, Ripple and Doge- getting approved in 2025 are over 80%. On a recent podcast with Bloomberg ETF analyst James Seyffart, we said issuers were throwing spaghetti at the wall to see what sticks. It appears regulators may be ready to say “Mangiano!” (let’s eat!) and we could be in for a feast.

And why not? Crypto ETFs are a big business, and they’re growing like a weed. Crypto ETFs had their third-best week by net inflows in history last week, gathering net assets of $3.4 billion1. And Bitcoin and Ethereum ETFs have already seen net inflows of $850 million this week in the first two trading days. Crypto investment products have total AUM of $152 billion globally1. The breakdown is 86% in BTC, 6% in ETH, 4% in multi-asset, and the rest spread across others.

So don’t expect these other ETFs to have the same kind of success as the Bitcoin ETF. Despite Bitcoin’s ~64% market dominance, Bitcoin ETFs account for 87% of total crypto investment product AUM globally. Even with a frenzy of other crypto ETF launches, the ETF desk at Bloomberg, where friend of the pod James Seyffart works, believes (FIX) Bitcoin ETFs will retain a 80-85% share of total AUM.2

Meanwhile, in the Great White North, we are holding onto our lead (barely) with Solana ETFs launching April 16th, making Canada the first country in the world to launch SOL ETFs3. After ten days, these already hold a combined $150M CAD in AUM. Unlike in the U.S. where staking is a hot-button issue, all the Canadian Solana ETFs will take part in staking, with the ability to stake up to 50% of the portfolio.

What’s next for markets, particularly in crypto? As we wrote recently, we see green shoots emerging that could set us up for a strong second half, if the tariff clouds part. At the start of April, Circle is the world’s second-largest stablecoin issuer, behind only Tether. The hope is that this IPO marks the beginning of a broader trend—a crypto IPO season that brings more private companies to public markets. Keep an eye on eToro, Bullish, Gemini, Kraken, Anchorage, Chainalysis, Figure, MoonPay, Ripple, and Consensys, which are all rumored to be waiting in the wings.

They say that April is a promise that May is bound to keep. If April was promising anything, it was that volatility is our new normal, so expect more violent swings as dueling narratives – (tariff uncertainty, strong AI spending, flight to safe havens like Gold and Bitcoin, recession risks, rate cuts, IPO season, and more)- shape the direction of markets.

Alex Tapscott, CFA
Ninepoint Partners 
 

 

References

  1. https://cointelegraph.com/news/crypto-etp-3-4-billion-inflows-weakening-dollar
  2. https://dailycoin.com/bitcoin-etfs-see-1-9-inflows-in-2023-reach-87-dominance/
  3. https://www.advisor.ca/news/canada-launches-spot-solana-etfs-as-crypto-race-ramps-up/

Historical Commentary

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  • Commentary
    March 2025
    Ninepoint Crypto and AI Leaders ETF
    Year-to-date to March 31, the Ninepoint Crypto and AI Leaders ETF generated a total return of -25.74%. For the month, the Fund generated a total return of -12.16%.
    Cryptocurrencies
    Web3
View All
All Funds
  • TKN
    (Series ETF)
    Exchange Traded Funds Liquid Alternatives Digital Assets
    $23.11 $0.52 (2.30%)
    As at 5/16/2025
    Growth of $100,000 Invested as at 4/30/2025
    Performance as at 4/30/2025
    1 Year
    6.64%
    3 Year
    8.88%
    5 Year
    -
    10 Year
    -
    Incept.1
    9.81%
    1 Inception Date 1/27/2021
    Go To Fund

    Effective January 6, 2025 the name of Ninepoint Web3 Innovators Fund was changed to Ninepoint Crypto and AI Leaders ETF. The Fund's investment objective remains unchanged. Effective May 31, 2023 the investment objective and name of Ninepoint Bitcoin ETF was changed to Ninepoint Web3 Innovators Fund. The reported performance is for the Ninepoint Bitcoin ETF to May 31, 2023 and that of Crypto and AI Leaders ETF (formerly Ninepoint Web3 Innovators Fund) after that date.

    All returns and fund details are a) based on Series ETF shares; b) net of fees; c) annualized if period is greater than one year; d) as at 4/30/2025. Where applicable, all figures are annualized and based on monthly returns since inception. Risk-free rate and minimum acceptable rate calculated using rolling 90-day CDN T-bill rate. The rate of return or mathematical table shown is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. Top ten holdings, sector allocation and geographic allocation as at 4/30/2025. Top ten holdings based on % of net asset value. Sector allocation based on % of net asset value. Geographic allocation based on % of net asset value and excludes cash. Numbers may not add up due to rounding. Cash and cash equivalents include non-portfolio assets and/or liabilities.

    The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the investment fund or returns on investment in the investment fund.

    The Fund is generally exposed to the following risks: No Assurance in Achieving Investment Objectives; Loss of Investment; Active Management Risk; Concentration Risk; Asset Class Risk; Blockchain Risk; Cryptocurrency Risk; Disruptive Innovation Risk; Emerging Technologies Risk; Communication Services Companies Risk; Information Technology Companies Risk; Liquidity Risk; Equity Securities Risk; General Risks of Foreign Investments; Trading Price of ETF Units; Cease Trading of Securities Held by Ninepoint Crypto and AI Leaders ETF Fund Risk; Small Company Risk; Specific Issuer Risk; Trading Price of Underlying Funds Risk; Derivative Instrument Risk; Securities Lending Risk; Reliance on the Manager; Manager and Custodian Standard of Care; Potential Conflicts of Interest; Valuation of Ninepoint Crypto and AI Leaders ETF Fund; Currency Risk; U.S. Currency Exposure; Substantial Securityholder Risk; No Ownership Interest in the Portfolio; Changes in Legislation; Inflation Risk; Not a Trust Company; Cyber Security Risk; COVID-19 Outbreak; Tax Risks

    Ninepoint Partners LP is the investment manager to a number of funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rates of return for series ETF units of the Funds for the period ended 4/30/2025 are based on the historical annual compounded total returns including changes in unit value and reinvestment of all distributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Funds.

    The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not a resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

    Ninepoint Partners LP: Toll Free: 1.866.299.9906. Dealer Services: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540

    Disclaimer: This advertisement is for information purposes only and should not be relied upon as investment advice. We strongly recommend that you consult your investment professional for a comprehensive review of your personal financial situation before undertaking any investment strategy. Information herein is subject to change without notice and Ninepoint is not responsible for any inaccuracies or to update this information. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not a resident in Canada should contact their financial advisor to determine whether securities of the Funds may be lawfully sold in their jurisdiction. 

    Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the ''Funds''). Important information about these Funds, including their investment objectives and strategies, purchase options, and applicable management fees, performance fees (if any), and expenses, is contained in their prospectus or offering memorandum. Please read these documents carefully before investing. Commissions, trailing commissions, management fees, performance fees, other charges and expenses all may be associated with investing in the Funds. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Effective January 6, 2025 the name of Ninepoint Web3 Innovators Fund was changed to Ninepoint Crypto and AI Leaders ETF. The Fund's investment objective remains unchanged. Effective May 31, 2023 the investment objective and name of Ninepoint Bitcoin ETF was changed to Ninepoint Web3 Innovators Fund. The reported performance is for the Ninepoint Bitcoin ETF to May 31, 2023 and that of Crypto and AI Leaders ETF (formerly Ninepoint Web3 Innovators Fund) after that date.

All returns and fund details are a) based on Series shares; b) net of fees; c) annualized if period is greater than one year; d) as at 4/30/2025. Where applicable, all figures are annualized and based on monthly returns since inception. Risk-free rate and minimum acceptable rate calculated using rolling 90-day CDN T-bill rate. The rate of return or mathematical table shown is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. Top ten holdings, sector allocation and geographic allocation as at 4/30/2025. Top ten holdings based on % of net asset value. Sector allocation based on % of net asset value. Geographic allocation based on % of net asset value and excludes cash. Numbers may not add up due to rounding. Cash and cash equivalents include non-portfolio assets and/or liabilities.

The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the investment fund or returns on investment in the investment fund.

The Fund is generally exposed to the following risks: No Assurance in Achieving Investment Objectives; Loss of Investment; Active Management Risk; Concentration Risk; Asset Class Risk; Blockchain Risk; Cryptocurrency Risk; Disruptive Innovation Risk; Emerging Technologies Risk; Communication Services Companies Risk; Information Technology Companies Risk; Liquidity Risk; Equity Securities Risk; General Risks of Foreign Investments; Trading Price of ETF Units; Cease Trading of Securities Held by Ninepoint Crypto and AI Leaders ETF Fund Risk; Small Company Risk; Specific Issuer Risk; Trading Price of Underlying Funds Risk; Derivative Instrument Risk; Securities Lending Risk; Reliance on the Manager; Manager and Custodian Standard of Care; Potential Conflicts of Interest; Valuation of Ninepoint Crypto and AI Leaders ETF Fund; Currency Risk; U.S. Currency Exposure; Substantial Securityholder Risk; No Ownership Interest in the Portfolio; Changes in Legislation; Inflation Risk; Not a Trust Company; Cyber Security Risk; COVID-19 Outbreak; Tax Risks

Ninepoint Partners LP is the investment manager to a number of funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rates of return for series units of the Funds for the period ended 4/30/2025 are based on the historical annual compounded total returns including changes in unit value and reinvestment of all distributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Funds.

The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not a resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

Ninepoint Partners LP: Toll Free: 1.866.299.9906. Dealer Services: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540

Disclaimer: This advertisement is for information purposes only and should not be relied upon as investment advice. We strongly recommend that you consult your investment professional for a comprehensive review of your personal financial situation before undertaking any investment strategy. Information herein is subject to change without notice and Ninepoint is not responsible for any inaccuracies or to update this information. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not a resident in Canada should contact their financial advisor to determine whether securities of the Funds may be lawfully sold in their jurisdiction. 

Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the ''Funds''). Important information about these Funds, including their investment objectives and strategies, purchase options, and applicable management fees, performance fees (if any), and expenses, is contained in their prospectus or offering memorandum. Please read these documents carefully before investing. Commissions, trailing commissions, management fees, performance fees, other charges and expenses all may be associated with investing in the Funds. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.