Canada’s first Bitcoin mutual fund launches, eligible for qualified investors

A Canadian cryptocurrency and blockchain investment firm, First Block Capital Inc., has announced that it’s launching the first and only regulated bitcoin fund in the country, allowing accredited investors to place funds in registered accounts.

First Block Capital has reported that its flagship product, the FBC Bitcoin Trust, has now attained mutual fund status, allowing fund holders to put units in a self-directed registered account such as a Registered Savings Plan (RRSP) or a Tax Free Savings Account (TFSA).

NEO Connect

The trust is available on the fund distribution platform NEO Connect, which operates under the ticker FBCBT. This allows advisors to trade the fund with a similar efficiency to trading ETFs. NEO Connect supports daily settlements, doing away with the previously existing 30-day redemption clause.

According to First Block Capital, the trust was approved by both the Ontario Securities Commission (OSC) and the British Columbia Securities Commission (BCSC).

Enhancing more market exposure

The co-founder and CEO of First Block, Sean Clark, believes that bitcoin mutual fund will enhance the coin’s market exposure as it removes the complicated barriers that are involved when investing in cryptocurrencies. He noted in his press statement:

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 Connect is the perfect partner with whom we have seized the opportunity to grow our fund within their proven and rapidly expanding fund distribution network.

How it works

Advisors simply need to select the unit numbers they intend to purchase on behalf of their clients, and then hit ‘buy’. The order executes at net asset value at the end of the day, without “ask” or “bid” spreads. Once this is done, the units move into their clients’ accounts automatically. According to the CEO of NEO Connect Joe Schmitt, accredited investors in Canada can now take positions in bitcoin with the FBC Bitcoin Trust through their advisors and trade without having to own or manage the actual bitcoins for the first time ever.

Schmitt further noted that:

As the world evolves, we are very pleased 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.

Investor response

First Block expects fund activity to begin soon, and hopes that more investors will flock in to move units in its first month of operation. The broker companies working with the firm before will be responsible for managing all transfers as the fund launches.

Good news for Bitcoin’s price?

The increased confidence in bitcoin by governing institutions is incredible. Canada approving the first bitcoin mutual fund in the country is certainly some great news to bitcoin investors and crypto enthusiasts. The gesture is seen as a door opener to similar products being approved in the country.

The FBC Bitcoin Trust comes at a time when bitcoin and other cryptocurrencies are struggling to break crucial resistant points. But as more investors flock in to get a share of the unit trust, the cryptocurrency adoption might continue.

James

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James is a cryptocurrency enthusiast, an advocate for the development and exposure of blockchain technology, and believes in the use of digital assets for the good of the society. He has been writing about crypto since he first learnt about cryptocurrencies in 2010. Initially, he was attracted by the disruptive economic and social implications of virtual currencies and blockchain technology, and over the years he has dedicated himself to learn everything he can about the industry.

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