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Ninepoint Partners LP plans to convert the Bitcoin Trust it manages to an exchange-traded fund next month, a move that it believes will result in a trading price that better reflects the underlying asset value.
Ninepoint raised about $230 million when it launched the initial public offering for its Bitcoin fund in January; it is one of several new securities that give investors the ability to own a piece of bitcoin but with none of the headaches tied to a direct investment in the cryptocurrency.
"By taking this step, Ninepoint is demonstrating its long-term commitment to being Canada’s leading provider of innovative, safe and efficient digital asset investment products," said James Fox, co-chief executive officer and managing partner of Ninepoint, in a statement.
The Toronto-based asset manager will hold a special shareholder meeting in April to vote on converting the closed-end investment fund that the Bitcoin Trust was first established as into an ETF.
Doing so will see an improvement in the trading price of the fund's units relative to their net asset value and bolster liquidity, according to Ninepoint. As of Tuesday, the trust traded at a 9.37 per cent discount to net asset value.
If shareholders approve the change, the fund will complete its conversion to an ETF in May.