Canadian mutual fund First Block Capital Inc. has according a to a press release , been awarded mutual fund trust status. The newly obtained status allows investors in their FBC Bitcoin Trust vehicle to put money in registered Tax Free Savings Accounts (TFSA) or Registered Retirement Savings Plans (RRSP) and take advantage of the accompanying tax benefits.
The trust (the first of it's kind for Canada) can be accessed through fund distribution platform, NEO Connect, under the ticker FBCBT. First Block's partnership with NEO Connect enables accredited investors to trade fund as seamlessly as one does ETF's.
Accredited investors (persons who are either registered with Canadian regulators as a dealer or advisor, persons who own financial assets exceeding $100,000 before tax, or persons with a net income exceeding $200,000 or $300,000 in two of the most recent calendar years) can search for the FBCBT symbol on NEO Connect and, using it's equity trading tools, input their desired number of units and click the "buy" option. The order will execute at net asset value at the end of the business day. The new position will reflect in investors accounts automatically.
Co-founder and Chief Investment Officer of First Block, Marc van der Chijs, explained:
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's new trust was approved by the British Columbia Securities Commission (BCSC) and Ontario Securities Commission (OSC), enabling the company to operate in compliance with Ontario Canada and British Columbia's regulations.
The fund, which has seen over a 150 unit holders since inception less than a year ago, is recognised by Canadian tax laws as a qualified investment in a mutual trust. The fund also offers investors exposure to the Bitcoin market without actually having to purchase, hold or trade the cryptocurrency.
Sean Clark, CEO and co-founder of First Block explained:
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.