A Canadian Cryptocurrency and blockchain investment company, First Block Capital, Inc. recently announced that its bitcoin trust called FBC Bitcoin Trust has already acquired the status of mutual fund in the country. The status will allow investors to park funds in registered accounts like Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA).
Besides this, the Trust can be used actively on NEO Connect, a fund distribution platform under the ticket FBCBT that allows only accredited investors only. Additionally, advisors can execute their trading activities for ETFs following the same efficiency. NEO Connect executes daily settlements by eliminating the erstwhile long procedure of 30-day redemption clause.
NEW Connect simplifies the market exposure stating that “At First Block, we provide investment exposure to bitcoin by removing the complicated barriers to investing directly in the cryptocurrency,” Sean Clark, CEO, and co-founder of First Block said in a prepared 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 is the perfect partner with whom we have seized the opportunity to grow our fund within their proven and rapidly expanding fund distribution network.”
On the technicality front, the advisors involved in the trading activities select NEO Connects for their existing equities trading tools to execute trading on behalf of their clients. And so the resultant posting automatically incorporate into the client accounts. NEO Connects simplifies the entire process that eventually benefits all stakeholders involved. Besides this, Trust will provide investors with exposure to trading bitcoin instead of having to buy, hold or manage the actual bitcoins.
Moreover, Trust units are believed to be a qualified investment in a mutual fund trust under the Tax Act with the fund has excelled 150 unitholders in less than a year since it was introduced in the market. On the approval front, the Trust has already acquired approved from the British Columbia Securities Commission and Ontario Securities Commission as per the valid source from First Block Capital. It’s considered only approved products in its kind of nature in Canada.
Joe Schmitt, President, and CEO of NEO, said in his statement “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 with 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.”
Amidst all these, Marc Van Der Chijs, Co-Founder and Chief Investment Officer of First Block commented that “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. With this accomplishment, we continue to push Canada forward as a world leader in regulated blockchain and cryptocurrency investment vehicles.”
Now that the Bitcoin has gained its popularity worldwide, NEO Connect claims to be the only distinct sole fund distribution of Canada allowing for prospectus and private offering memorandum funds that can be traded the same way ETFs are. The trust let distribute 46 funds managed by three assets manages across 15 dealer networks with the size of assets is $600 million!!