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Ninepoint Crypto and AI Leaders ETF

Ninepoint Crypto and AI Leaders ETF April 2025
Key Takeaways
  • Crypto and AI-related sectors surged in June, far outpacing gains in the underlying cryptoassets themselves, showing strong momentum in broader market enthusiasm.
  • Key regulatory and structural changes are pushing crypto further into the mainstream, including major U.S. legislation for stablecoins and landmark public market events that signal growing institutional confidence

Year-to-date to June 30, the Ninepoint Crypto and AI Leaders ETF generated a total return of 1.49%. For the month, the Fund generated a total return of 10.71%.

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

1M

YTD

3M

6M

1YR

3YR

Inception

Fund

10.71

1.49

36.66

1.49

28.28

49.93

16.08

After hitting an inflection point in May, the crypto and AI sectors extended their rally in June, driving continued strength across the portfolio. The fund returned 10.71% in June, marking its second-best monthly performance of 2025, behind only May’s 17.33% gain.

Despite Bitcoin ending the month at a record high of $107,100, it gained just 3.2% over the period. Other large-cap cryptoassets posted similarly muted returns, with Ethereum up only 0.3% and Solana rising 3.0%. The real drivers of performance came not from the underlying cryptoassets, but from crypto- and AI-related public equities, which began to meaningfully outperform. On the crypto equity front, standout performers included Coinbase (+43.6%), Robinhood (+42.0%), and Galaxy Digital (+19.0%). AI leaders also delivered strong results: Nvidia (+15.4%), Broadcom (+11.6%), and Advanced Micro Devices (+26.9%). Each of these names far outpaced the Nasdaq’s 6.3% return, underscoring the powerful sectoral tailwinds. Our fund was well positioned to capture this shift via its three-pronged approach, offering diversified exposure to: (i) growth in digital asset platforms, like Bitcoin, Ethereum, and Solana, indirectly via listed Canadian cryptocurrency ETFs; (ii) pure-play crypto and AI businesses; and (iii) high-quality growth tech "beneficiaries."

On June 17th, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act passed the U.S. Senate with strong bipartisan support (68–30), marking a watershed moment for stablecoin regulation. The Act establishes a clear legal framework for both banks and non-banks to issue fully backed, dollar-denominated digital assets. Once signed into law, it will lay the foundation for a regulated, globally competitive stablecoin market anchored in the U.S. We’ve long believed that the passage of the GENIUS Act would be a major catalyst for equities tied to crypto and broader blockchain adoption, a view that evidently played out. Interestingly, traditional payments incumbents like Mastercard and Visa initially sold off on the news, as investors weighed the threat of stablecoin disruption. In our view, that reaction is likely overdone. Both companies have been proactive in embracing blockchain technologies and are well-positioned to benefit from the increasing ubiquity of digital payments, both onchain and offchain.

Circle, the world’s second-largest stablecoin issuer, underwent its long-awaited IPO on June 5 at $31 per share. By June 23, Circle had surged almost 10x to $300 and a $60 billion market capitalization. While it did come down slightly, it ended the month around $180, up 6x from its IPO. Circle’s IPO was a litmus test for the industry. We think this sets the stage for a pipeline of high-quality crypto companies to follow, with potential candidates including Kraken, Gemini, Bullish, Consensys, Ripple, Chainalysis, Anchorage, and several others. Many had planned to go public during the last cycle but were delayed by regulatory uncertainty. Now they’re well-positioned with sound fundamentals and sector-wide tailwinds. This will materially expand our public equity investable universe in an environment where crypto's biggest gains are happening on the stock market rather than onchain.

Enterprise crypto adoption continues to accelerate, reaching new highs in both scale and strategic importance. Today, 60% of Fortune 500 companies are actively pursuing crypto initiatives, with 20% viewing it as a core pillar of their long-term strategy. The past month delivered a flurry of high-profile announcements that underscore just how serious this shift has become. Shopify partnered with Coinbase and Stripe to enable USDC stablecoin payments across its vast merchant network. JPMorgan is preparing to let high-net-worth clients use certain crypto-linked assets as collateral for loans and will begin factoring crypto holdings into its wealth and liquidity assessments. Fiserv launched its own stablecoin, FIUSD, on the Solana network. Mastercard teamed up with Chainlink to enable onchain crypto purchases. And Visa CEO Ryan McInerney took to CNBC to confirm that the company has been building with stablecoins for years, specifically to prepare for this exact moment of mainstream adoption.

Investor demand for cryptoassets remains robust. 86% of institutional investors are either already exposed or plan to gain exposure by year-end. Global crypto investment products attracted $6 billion in net inflows during the month, roughly 34% of the $17.8 billion in YTD flows, bringing total AUM to $184 billion. BlackRock’s iShares Bitcoin Trust (IBIT) became the fastest ETF in history to reach $70 billion in assets, hitting the milestone in just 341 trading days. For comparison, the SPDR Gold Trust (GLD), the previous record holder, took nearly 5x longer to reach the same level. While many, including us, have focused on the prospect of a crypto IPO wave, it’s becoming increasingly clear that a crypto ETF season may arrive even sooner. Nearly 100 crypto ETF filings from U.S. issuers are currently under SEC review. At the end of the month, Bloomberg ETF analysts Eric Balchunas and James Seyffart raised their approval odds across the board, now assigning over 90% probability for 2025 approval of both crypto basket ETFs and single-asset products tied to Solana (SOL), XRP (XRP), Dogecoin (DOGE), Cardano (ADA), Polkadot (DOT), Hedera (HBAR), Avalanche (AVAX), and Litecoin (LTC). They cited the upward revision was due to increased engagement between the SEC and issuers. The emergence of public crypto treasury companies, first seen in May, gained further momentum this month. While early entrants focused primarily on Bitcoin, Ethereum, or Solana, a new wave of treasury vehicles is now targeting smaller-cap altcoins further down the risk curve. Elsewhere in the world, the U.K.'s FCA proposed lifting its ban on crypto ETNs for retail investors, while Canada quietly extended its lead in the global ETF race with the launch of XRP ETFs on June 18.

We believe our fund is uniquely positioned to benefit from the powerful and accelerating tailwinds across both the crypto and AI sectors. This month, public equities were the clear standout, delivering significant outperformance. Last month, it was Ethereum that led the way, rallying over 40% compared to Bitcoin’s 8.5% gain. Earlier in the year, as macroeconomic uncertainty took hold, Bitcoin stood out for its relative stability and lower volatility. These rotating leadership dynamics highlight the importance of maintaining diversified exposure across the crypto and AI landscape, one that we embed into our fund with discipline and conviction.

Alex Tapscott, CFA
Ninepoint Partners 

Historical Commentary

View All
  • Ninepoint Crypto and AI Leaders ETF
    Year-to-date to May 30, the Ninepoint Crypto and AI Leaders ETF generated a total return of -8.33%. For the month, the Fund generated a total return of 17.33%.
    Cryptocurrencies
    Web3
  • Ninepoint Crypto and AI Leaders ETF
    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%.
    Cryptocurrencies
    Web3
  • 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

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 6/30/2025. 

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: Active Management Risk; Blockchain Risk; Communication Services Companies Risk; Concentration Risk; Cryptocurrency Risk; Currency Risk; Cybersecurity Risk; Derivatives Risk; Disruptive Innovation Risk; Emerging Technologies Risk; Exchange Traded Funds Risk; Foreign Currency NAV Risk; Foreign Investment Risk; Inflation Risk; Information Technology Risk; Liquidity Risk; Market Risk; Regulatory Risk; Securities Lending; Repurchase and Reverse Repurchase Transactions Risk; Series Risk; Small Company Risk; Specific Issuer Risk; and Tax Risk. Additional risks specific to the ETF Series securities include the Absence of an Active Market for ETF Series Risk; Halted Trading of ETF Series Risk; and Trading Price of ETF Series Risk.

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 6/30/2025 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.

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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 resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

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