Ninepoint Partners Launches $180 Million Bitcoin Trust Fund, Amid Bitcoin ETF Regulatory Hurdles
Canadian firm Ninepoint Partners have launched a Bitcoin Trust Fund after raising nearly $180 million in private investment. The Canadian private investment fund is following in the footsteps of the popular fund manager Grayscale. The firm has listed its shares on Toronto Stock Exchange which would be backed by Bitcoin it holds with New-York based Gemini.
Bitcoin Exchange Traded Fund (ETF) is one of the most controversial topics as regulators continue to sideline the demand suggesting the market is not big enough for an ETF. However, institutions have found a way around these regulatory hurdles by investing in private trust funds such as Grayscale who launch publically traded share which is backed by bitcoin trust.
Big News: Ninepoint's Bitcoin Trust, has raised $180 million and just IPO'd on the Toronto Stock Exchange. Proud that @Gemini Custody is the custodian. To the moon! ???????? https://t.co/pBsh8KS6G2
— Tyler Winklevoss (@tyler) January 27, 2021
Ninepoint is trying to emulate the highly successful Grayscale model of offering bitcoin-backed tradable shares and earning a commission on the traded stock. The Candian Bitcoin Trust would be available at 0.7% with no lockup period, unlike its American counterpart who is known for closing its shares from time to time.
Grayscale’s premium has been a controversial topic because of the premium prices, and many believe SEC would eventually come for them and shut them once the market is ready for a real ETF.
Bitcoin ETF Faces Regulatory Woes
The US Securities and Exchange Commission has rejected all the ETF proposals till now, but the exit of former SEC chief Jay Clayton made many believe that the rising bitcoin price and overall crypto market cap could help launch the first Bitcoin ETF very soon. However, the recent comments made by Treasury Secretary Janet Yellen regarding bitcoin and the proposed regulations around crypto wallets as well as the StableAct has made many rethink their early enthusiasm.
Ark Investment Management CEO Cathie Wood recently conveyed that a Bitcoin ETF would not be possible until the market cap is about $2 Trillion.
- Polymarket Founder Shayne Coplan Teases Potential POLY Token After $2B ICE Deal
- FOMC Minutes Signal Fed Open to More Rate Cuts This Year, Bitcoin Bounces
- North Dakota To Issue ‘Roughrider’ Stablecoin Following Wyoming’s Footsteps
- Ethena Labs and Jupiter Partner to Launch JupUSD Stablecoin on Solana
- BlackRock’s Bitcoin ETF Leads ETFs With $3.5B Weekly Inflows as It Eyes $100B in AUM
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
- Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
