Important Notice

The Bitcoin Trust from Ninepoint is currently in the process of converting to an ETF, expected to occur in May. Please click here for more information or click here for the investor circular.

Bitcoin Trust

    

Why Invest in Bitcoin Trust

  • Professionally managed exposure to an emergent asset class
  • An attractive complement to gold
  • Best-in-class custodians, vendors, and counterparties
  • Ninepoint Partners deep experience in managing alternative investment vehicles
  • RRSP eligible
  • 0.70% management fee

 

Fund Objective

The Fund’s investment objectives are to seek to provide Unitholders of the Fund with exposure to digital currency Bitcoin through an institutional-quality platform that is cost-efficient to Unitholders and to provide a secure, simpler and exchange-traded investment alternative for buying and holding Bitcoin.

Investment Strategies

  • The Fund intends to achieve its investment objectives by investing directly in Bitcoin while using high quality service providers, including digital asset trading counterparties, trading platforms and custodians, and independent auditors, legal and valuation agents, in order to manage the assets of the Fund. By having in-house expertise, the Manager expects to offer a cost-efficient structure to Unitholders for ongoing management fees.

  • The Fund’s Bitcoin will be valued based on the MVIS CryptoCompare Institutional Bitcoin Index (“MVIBTC”) maintained by MV Index Solutions GmbH (“MVIS”), or a successor or alternative institutional-quality index. MVIS is a wholly-owned subsidiary of Van Eck Associates Corporation, a large, long-standing, and well-regarded financial services firm.

  • As it is the Fund’s intention to invest in Bitcoin on a passive basis, the Fund will not speculate with regard to changes in Bitcoin prices and sales of Bitcoin will generally only be undertaken by the Fund as required in order to fund expenses and redemptions. In addition, the Fund will not hedge any U.S. dollar currency exposure back to the Canadian dollar. The Fund will provide investors with the ability to invest in Bitcoin without the inconvenience and additional transaction and storage costs associated with a direct investment in Bitcoin.

  • The Fund will purchase Bitcoin through established, regulated platforms as well as in the OTC market using regulated counterparties. The Manager has undertaken and will undertake due diligence to ensure that all counterparties and vendors adhere to know your customer and anti-money laundering rules and requirements.

 

 

Bitcoin Trust - Buy Better Bitcoin

Bitcoin Trust from Ninepoint

What does Better Bitcoin mean?

  • Convenient way to own Bitcoin: Bitcoin Trust provides investors a convenient way to obtain exposure to Bitcoin by providing an opportunity to purchase a listed Unit on a recognized global stock exchange, the TSX.
  • Cost-efficient. One of the lowest management fees compared to other Canadian-listed funds and ETFs.
  • Experienced manager with track record in alternative assets: Ninepoint has a long and successful track record of launching fund products that provide investors with exposure to novel or emerging asset classes. We believe our operations and compliance expertise in managing alternative asset businesses set us apart.
  • Knowledge and expertise about Bitcoin: Ninepoint has differentiating expertise in this asset class.
  • Liquidity: Many cryptocurrency platforms have withdrawal limits. Investors in the Bitcoin Trust will only be limited by how much liquidity exists in the market for Units of the Fund.
  • Eligibility for Registered Accounts: Units of the Bitcoin Trust are eligible for registered accounts in Canada whereas the CRA guidance is not definitive on owning Bitcoin on its own in a registered account.
  • Access to Trading Venues: Due to the expertise and relationships of its principals, Ninepoint has access to many large, regulated trading venues and can access large pools of liquidity.
  • Best-in-Class Custody Counterparties: Cidel Trust Company and Gemini.

 

Ask your Advisor about Bitcoin Trust from Ninepoint, or trade now:

Tickers: BITC.U (USD) and BITC.UN (CAD)

 

 

Bitcoin Trust from Ninepoint

Frequently Asked Questions

Q: Where can I learn about Bitcoin?
A: You can find out more on our Digital Assets Group website


Q: When will Bitcoin Trust convert to an ETF?
A: Subject to the approval of unitholders and regulators, the Bitcoin Trust will convert to an ETF in May of 2021.


Q: What are the other benefits of converting to an ETF
A: The ETF will reduce tracking error and improve liquidity and, the manager believes, reduce costs through economies of scale.


Q: How does Ninepoint's management fee compare to others in the industry?
A: Ninepoint's management fee of 0.70% is one of the lowest in the industry. Low fees mean better returns for you, our investor.


Q: Is the Bitcoin Trust eligible for my RRSP and TFSA?
A: Yes. Bitcoin Trust can be held in any registered account


Q: How does Bitcoin Trust purchase its Bitcoin?
A: Bitcoin Trust works with large, sophisticated and regulated entities such as exchanges and over-the-counter trading firms to purhcase its Bitcoin. The market for Bitcoin is very liquid. For example, Bitcoin Trust was able to purchase US $180 million of Bitcoin in less than a day without having any impact on the market price.


Q: Do I need to download a wallet to buy Bitcoin Trust?
A: No. You simply buy it on the stock exchange, like any other stock or security


Q: Can I buy Bitcoin on the TSX?
A: You can't buy Bitcoin, but you van buy units of the Bitcoin Trust as easily as you would buy any other stock or security


Q: Where is the Bitcoin custodied and is it secure?
A: The Bitcoin Trust custodies its Bitcoin with Gemini, which is a New York licensed trust company. Gemini custodies billions of dollars worth of Bitcoin on behalf of Fortune 500 companies and major asset managers. They also have a $200 million insurance policy in place for added security.


Q: Are you fully invested in Bitcoin at all times?
A: Yes. Bitcoin Trust is always fully invested in Bitcoin. Other funds employ derivatives which can increase tracking error. Ninepoint believes that the Bitcoin Trust, in the long run, gives investors the best exposure to Bitcoin


Q: What Bitcoin price is used to calculate the Net Asset Value of the Bitcoin Trust?
A: The Trust uses the MVIS Bitcoin Index

 

The historical NAV chart does not represent performance of the Fund. It is shown to illustrate the daily movement of the NAV and does not include reinvested distributions. Please note that the Fund's units trade on the TSX where investors will generally buy or sell the Fund's units at Market Price. Investors may pay more or less than the NAV and may also incur brokerage commissions for such transactions. 

The indicated rates of return are the historical annual compounded total returns, including changes in unit value and do not take into account sales, redemption or optional charges or income taxes payable by a security holder that would have reduced returns. 

Are You An Accredited Investor?

The minimum subscription amount is $150,000.00 in all jurisdictions, unless you meet the definition of "accredited investor" under National Instrument 45-106 Prospectus and Registration Exemptions.

If you meet the definition "accredited investor" (see below), you may invest a minimum of $25,000. Please consult the Offering Memorandum to determine your qualification status. Investment Advisors should consult their company's internal policies.

The Subscriber, or one or more beneficial purchasers for whom the Subscriber is acting, is (i) a resident of, or the purchase and sale of securities to the Subscriber is otherwise subject to the securities legislation of one of the following: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, North West Territories, or Nunavut, and the Subscriber is (and will at the time of acceptance of the Subscription be) an accredited investor within the meaning of National Instrument 45-106 Prospectus and Registration Exemptions ("NI 45-106") because the Subscriber is one of the following:

(a) a Canadian financial institution, or a Schedule III bank;
(b) the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);
(c) a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;
(d) a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador);
(e) an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);
(f) the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada;
(g) a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'île de Montréal or an intermunicipal management board in Québec;
(h) any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government;
(i) a pension fund that is regulated by the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada;
(j) an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;
(k) an individual whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;
(Note: If individual accredited investors wish to purchase through wholly-owned holding companies or similar entities, such purchasing entities must qualify under section (t) below, which must be initialled.)
(l) an individual who, either alone or with a spouse, has net assets of at least $5,000,000;
(m) a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements;
(n) an investment fund that distributes or has distributed its securities only to:
  1. a person that is or was an accredited investor at the time of the distribution,
  2. a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [Minimum amount investment] or 2.19 [Additional investment in investment funds] of NI 45- 106, or
  3. a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [Investment fund reinvestment] of NI 45-106;
(o) an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;
(p) a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be;
(q) a person acting on behalf of a fully managed account managed by that person, if that person:
  1. is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction; and
  2. Ontario, is purchasing a security that is not a security of an investment fund;
(r) a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;
(s) an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;
(t) a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors;
(u) an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser, or;
(v) a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor.

 

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