CI Global Asset Management today announced the launch of CI Bitcoin Fund , North America’s first mutual fund to provide dedicated exposure to bitcoin. Through the Fund, investors can access the bitcoin market at an industry-low management fee of 0.40% (Series F) and with an initial minimum investment of just $500.
Today, CI is the only firm globally offering investors access to bitcoin in both mutual fund and ETF structures.
“CI Bitcoin Fund provides another convenient, secure and cost-effective option for Canadian investors to add bitcoin to their portfolios,” said Kurt MacAlpine, Chief Executive Officer of CI Financial Corp., the parent company of CI GAM. “As investor interest in digital assets continues to grow, it was a natural next step for CI to extend our bitcoin investment capabilities to a mutual fund platform, in addition to the CI Galaxy Bitcoin ETF.
“In offering a broad suite of crypto products, we are truly democratizing access to bitcoin and other digital assets,” Mr. MacAlpine said. “We are very excited by the prospects for these investments as we continue to build on our leadership in this space.”
The Fund’s investment objective is to provide investors exposure to bitcoin through an institutional-quality fund platform. It invests all or substantially all of its assets in the CI Galaxy Bitcoin ETF (“the ETF”), which trades on the Toronto Stock Exchange under the ticker BTCX. BTCX invests directly in bitcoin with its holdings priced using the Bloomberg Galaxy Bitcoin Index (the “BTC”), which is designed to measure the performance of a single bitcoin traded in U.S. dollars. The BTC index is owned and administered by Bloomberg Index Services Ltd.
BTCX uses high-quality service providers in the digital assets sector, including Galaxy Digital Capital Management LP (“GDAM”), which serves as the bitcoin sub-advisor for the ETF. GDAM executes bitcoin trading on behalf of the ETF and is the asset management arm of Galaxy Digital, a diversified financial services firm dedicated to the digital asset and blockchain technology sector. The GDAM team has deep institutional experience managing third-party capital across traditional and alternative asset classes, strong relationships with institutional service providers and counterparties, and exceptional connectivity throughout the blockchain and digital assets ecosystem.
CI Bitcoin Fund is available to retail investors in Canada in Series A, F and P units, with Series A carrying a management fee of 0.90% and Series F, 0.40%, which is the same management fee as BTCX. In addition to the industry-low management fee, benefits of the Fund and BTCX include convenient access to bitcoin, secure storage of bitcoin holdings in a segregated cold storage system, the digital asset management expertise of GDAM, and eligibility for registered plans.
CI GAM’s digital asset lineup also includes CI Galaxy Bitcoin Fund (TSX: BTCG), a closed-end investment fund that CI GAM launched in December 2020 and which it intends to merge into BTCX. It has also obtained receipts for the preliminary prospectuses of CI Galaxy Ethereum ETF (the “Ether ETF”) and CI Ether Fund, a mutual fund. The Ether ETF will invest directly in Ether, the cryptocurrency built on the Ethereum blockchain, while CI Ether Fund will invest in units of the Ether ETF.