First Block Capital Inc., the Canadian cryptocurrency and blockchain investment company, recently announced that their FBC Bitcoin Trust has garnered a mutual fund status in Canada following approvals from the British Columbia Securities Commission (BCSC) and Ontario Securities Commission (OSC). The trust is also billed as the first of its kind ever regulated in Canada.
Available on the self-regulated fund distribution platform known as NEO Connect under the ticker of FBCBT, the trust enables investors to set up funds in registered accounts such as Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA). However, the FBC Bitcoin Trust is only applicable to accredited investors in Canada. This includes advisers or dealers registered under the securities regulators, as well as beneficial owners with financial assets exceeding $1 million before taxes and those who generate a net income beyond $200,000 or $300,000 before taxes in every two current calendar years.
Joe Schmitt, president and CEO of NEO Connect, said in a press release published on September 10th, “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 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.”
Marc van der Chijs, the co-founder and chief investment officer of First Block Capital Inc., added, “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. With this accomplishment, we continue to push Canada forward as a world leader in regulated blockchain and cryptocurrency investment vehicles”.
With the help of registered broker-dealer firms to manage the fund transferring process, First Block Capital Inc. predicted that a majority of FBC Bitcoin Trust investors will begin moving their units within the first month.
NEO Connect circulates 46 funds, which are handled by three asset managers from over 15 dealer networks. At the time of writing, they have serviced at almost $600 million worth of assets.