Canada’s Largest Fund Group Partners with Galaxy Digital, Completes $72M IPO of a Bitcoin Fund
Amidst Bitcoin’s crazy rally, Canadian mutual fund manager CI Financial Corp. raised $72 million in an initial public offering of a Bitcoin fund.
Founded in 1965, CI Financial is Canada's largest independent mutual-fund manager with C$215.6 billion in assets under management as of Nov. 30.
While Toronto-based CI Financial will be managing the fund, Mike Novogratz’s Galaxy Digital will be the sub-advisor and execute the Bitcoin trading on behalf of the fund. On this collaboration, Novogratz commented,
“Fuel to the fire. So excited to partner with Canada’s largest fund group.”
The IPO attracted interest from a wide range of investors, including individuals, institutions, high-net-worth investors, and financial advisers.
Each share of the CI galaxy Bitcoin Fund was sold at C$12.88 ($10). It will be listed on the Toronto Stock Exchange to trade in U.S. and Canadian dollars.
The fund enables the company's clients to hold the largest cryptocurrency through existing investment channels without going on new platforms. CI Financial Chief Executive Officer Kurt MacAlpine in an interview said,
“Having a product that can be bought directly — it can be bought through their financial adviser on behalf of them — it just makes their life a lot simpler than having to address their desire for Bitcoin via different structures and wallets.”
The closed-end fund will invest directly in Bitcoin, which will be held in segregated cold storage.