Canada’s only regulated bitcoin fund, FBC Bitcoin Trust, which is exclusive to accredited investors only, is now a mutual trust fund, and interested investors can purchase it on NEO Connect, reported Business Wire on September 10, 2018.
FBC Bitcoin Trust Now Live on NEO Connect
First Block Capital Inc., has announced that its FBC Bitcoin Trust which is open to accredited investors only, is now a mutual trust fund and holders can put units of it in their self-directed Tax Free Savings Accounts (TFSA) and their Registered Retirement Savings Plans (RRSP).
Additionally, the FBC Bitcoin Trust is now live on the NeoConnect trading platform, and investment advisors can now purchase and redeem the FBC Bitcoin Trust for their qualified clients with the ticker, FBCBT.
On the NEO Connect platform, investors can leverage the daily settlement mechanism, eliminating the previous 30-day redemption system.
The FBC Bitcoin Trust Advantage
First Block Capital Inc. claims to offer accredited investors an investment vehicle that gives them exposure to the world’s flagship cryptocurrency, bitcoin, without them having to hold, acquire or manage the super volatile cryptoassets.
Per Business Wire, FBC Bitcoin Trust is the only product of its kind that has gained the approval of the British Columbia Securities Commission (BCSC) and the Ontario Securities Commission (OSC). The trust units are categorized as qualified investment for a mutual fund trust under the Canadian Tax Act, as the fund has attracted more than 150 unit holders within 12 months of its creation.
“Since inception, First Block Capital has been committed to providing investors with regulated, titled and auditable exposure to investment vehicles based on blockchain and cryptocurrency,” said Sean Clark, Co-Founder and CEO of First Block.
Co-founder and Chief Investment Officer of First Block, Marc van der Chijs, also reiterated that the firm’s latest accomplishment would motivate them to keep putting Canada at the frontline of the cryptocurrency and blockchain revolution via their investment vehicles.
“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.”
While the First Block initiative is an excellent move in the right direction for the Canadian cryptospace, the global digital assets industry is yet to have a regulator-approved cryptocurrency ETF, and it appears that won’t be happening anytime soon.
In August 2018, reports emerged that the US SEC had rejected the Bitcoin ETF filings of NYSE Arca and the Cboe BZX Exchange, citing their failure to meet the necessary listing requirements.