Ninepoint Partners is changing the name and investment objective of its Bitcoin ETF to focus more broadly on digital asset and blockchain companies.
Unitholders approved Ninepoint’s proposed change in a vote on Thursday. At the end of May, the Ninepoint Bitcoin ETF will become the Ninepoint Web3 Innovators Fund (TSX: TKN; TKN.U), investing in companies operating in the decentralized internet, blockchain and digital assets.
The fund may continue to own bitcoin indirectly through other Canadian cryptocurrency ETFs, according to a notice sent to unitholders last month.
“Bitcoin, while important, is now one of several significant innovations enabled by blockchain,” the notice said. “The new strategies will give unitholders access to a much larger investment universe, while remaining focused on digital asset innovation.”
More Web3 and digital asset companies have gone public, Ninepoint said, creating investment opportunities.
The Ninepoint Bitcoin ETF launched in January 2021 and other manufacturers released similar products around the same time, as the price of bitcoin and other cryptocurrencies soared. By November of that year, when bitcoin’s price was peaking above US$68,000, the Ninepoint fund had more than $72 million in assets under management.
The following year saw cryptocurrency values plunge. The Ninepoint ETF dropped by 64% in 2022. By Jan. 31, 2023, the ETF’s assets were down to $22.3 million.
Bitcoin has rebounded this year. As of March 31, the Ninepoint fund was up more than 80% year to date. Its return since inception was -5.9%.
Here’s other product news from Canadian fund companies.
- Mackenzie Investments launched a sustainable ETF and accompanying mutual fund that tracks the Corporate Knights Global 100 Index. The media and research company Corporate Knights selects the 100 global companies in the index using 25 sustainability measures, and all must have more than US$1 billion in annual revenue. The Mackenzie Corporate Knights Global 100 Index ETF (NEO: MCKG) holds the constituent securities — which include Tesla Inc., Apple Inc., First Solar Inc. and Teck Resources Ltd. — in equal weighting and rebalances annually. The mutual fund invests in the ETF. The management fee is 0.5% for the ETF and for the Series F of the mutual fund, while the Series A fee is 1.55%. The risk rating is medium.
- MD Financial Inc. introduced a new private investment product, the MD Platinum Global Private Equity Trust. Offered through MD Private Investment Counsel, the trust will invest in primary and secondary private equity funds, start-ups and buyouts. MD says the longer-term investments will diversify portfolios and reduce volatility. It is MD’s fourth private asset pool, following the release of private credit, private real estate and an earlier private equity product.
If you have investment product news, email Mark Burgess at markb@newcom.ca.