Canada Approves First Ever Bitcoin Trust Fund September 11, 2018 September 11, 2018 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsSeptember 11, 2018 by Kelly Cromley

Canada Approves First Ever Bitcoin Trust Fund

Canada has permitted the first ever regulated Bitcoin trust fund, which carries Mutual fund status.

The fund empowers accredited investors to acquire Bitcoin through their tax-free saving accounts and retirement savings plan, among others.

Canada’s first ever regulated Bitcoin fund with mutual fund status

Canada is taking a lead over the SEC by endorsing a Bitcoin Fund and granting it with the mutual fund trust status. Per the official declaration by the First Block Capital Inc., the FBC Bitcoin Trust has turn out to be the first ever regulated Bitcoin Trust qualified for certified investors.

This permits the unit holders to place their units within a self-directed registered account similar to a tax-free savings account (TFSA) and registered retirement savings plan (RRSP). This trust is offered for purchase on NEO Connect platform and the ticker symbol is FBCBT. Likewise, as the ETFs are transacted, FBC Bitcoin Trust is acquired and redeemed via NEO Connect. The platform has removed the 30-day redemption rule and presently allows daily settlements.

First Block Capital is the first ever dedicated and fully registered cryptocurrency and blockchain investment company with PM, IFM, and EMD licenses. Sean Clark, the co-founder and CEO of First Block Capital said

“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. 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 space.”

The trust works on the principle that accredited investors can receive exposure to the Bitcoin, but without having a need to actually store, acquire, and manage the underlying Bitcoin.

According to the Tax Act, if the trust units go above 150 unit holders in a year of its unveiling, it is categorized as a mutual fund trust. Furthermore, the pronouncement points out that the Bitcoin trust is the first and only OSC (Ontario Securities Commission) and BCSC (British Columbia Securities Commission) endorsed investment vehicle of its kind in Canada. This is along with the sole chance of holding units of BTC investment in their Retirement Savings Plans (RRSP) and Tax-Free Savings Accounts (TFSA).

Marc van der Chijs, co-founder and CIO of First Block, said

“With this accomplishment, we continue to push Canada forward as a world leader in regulated blockchain and cryptocurrency 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 unitholders 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.”

Besides, First Block is particularly confident as it expects a majority of their investors will embark on moving the units within the initial month itself.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.