According to a press release published on 10th September, Canada has regulated Bitcoin [BTC] Fund and permitted it with the mutual fund trust status. First Block Capital Inc had officially announced that the trust is the first and only regulated Bitcoin Trust eligible for accredited investors.
The mutual fund trust status will allow unit holders to put their units in a self-directed and registered account such as an RRSP [Retirement Savings Plans] or TFSA [Tax-Free Savings Accounts].
The report stated that FBC Bitcoin Trust can be purchased on NEO Connect with the help of ticker FBCBT. NEO Connect also allows investment advisors to efficiently purchase and redeem the FBC Bitcoin Trust. It can be purchased on behalf of the accredited investor clients in the same way they buy and sell ETFs [exchange-traded funds]. NEO Connect enables daily settlements by removing the previous 30-day redemption clause.
Sean Clark, Co-Founder, and CEO of First Block stated that they will provide investors a regulated, titled and auditable exposure to investment vehicles based on blockchain and cryptocurrency. He further stated;
“Our team is extremely proud to maintain our market leading position and will continue to execute our vision of creating a fleet of investible products dedicated to the space”
Once the trust units exceed 150 unit holders, the tax act will automatically enable them to create a mutual fund trust, the press release stated. The Bitcoin trust is one of the first OSC [Ontario Securities Commission] and BCSC [British Columbia Securities Commission] approved product. This will allow them to hold units of BTC investment in their RRSP and TFSA.
Marc van der Chijs, Co-founder and Chief Investment Officer of First Block also stated;
“Our goal is to make investments in the digital currency asset class more accessible and we are one step closer to achieving this goal by allowing unit holders to place units in government sponsored tax efficient vehicles, and by providing daily liquidity through NEO Connect, a fund distribution platform with a rapidly growing dealer network”
First Block Capital is also anticipating that the more than half of the investors in the FBC Bitcoin Trust will begin moving units within the first month. All transfers will be managed by registered broker dealing firms who have worked closely with First Block to prepare the launch of this fund.
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