Canadian Cryptocurrency and Blockchain Investment Company, First Block Capital Inc (FBC) has announced that its Bitcoin Trust, has been granted mutual fund status by the BCSC (British Columbia Securities Commission) and OSC (Ontario Securities Commission), allowing investors to place funds in self-directed registered accounts such as a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP).
The FBC Bitcoin trust, for the time being, will only be available to accredited investors. This will allow them to deposit funds into accounts which will provide tax benefits for retirement and savings purposes. The trust will be only available on NEO Connect, a funds distribution platform.
Here’s what Sean Clark, CEO and co-founder of First Block said in a prepared statement to Business Wire
“At First Block, we provide investment exposure to bitcoin by removing the complicated barriers to investing directly in the cryptocurrency. As the market leader in providing investment vehicles based on blockchain and cryptocurrency in Canada, we are very happy to make our fund more accessible to the accredited investor community. In this fast-changing world, NEO is the perfect partner with whom we have seized the opportunity to grow our fund within their proven and rapidly expanding fund distribution network.”
The trust will be available on NEO Connect under the ticker FBCBT. Investors will be able to trade the fund with the same efficiency and ease as trading ETFs (Exchange-Traded Funds).
Joe Schmitt, president and CEO of NEO in a statement said –
“Today, for the first time in Canada, accredited investors working with investment advisors can seamlessly take positions in bitcoin through the FBC Bitcoin Trust. As the world evolves, we are very pleased with our unique fund distribution platform can help the investment community access, with ease and efficiency, an ever-expanding spectrum of new and innovative asset classes.”
Making Bitcoin great again 🇨🇦
The trust will give investors access to Bitcoin without having to acquire, hold, or manage the actual bitcoins. Trust units will be considered as a qualified investment in a mutual fund trust under the Tax Act. Neo Connect expects most FBC Bitcoin Trust investors will start to move units from the first month. The First Block is working with registered broker-dealer firms to manage all transfers to prepare for the fund’s launch. NEO Connect distributes 46 funds managed by three asset managers over 15 dealer networks, servicing nearly $600 million worth of assets.
With the current volatility in cryptocurrency, it’s extremely important that accredited investors take the plunge into Bitcoin. This would reassure other countries and organizations to invest in cryptocurrencies. Stay tuned for more updates.
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