Marking a new achievement for the country, the Canadian regulated bitcoin trust now receives the status of a mutual fund trust. This means that the regulated bitcoin of Canada is reckoned as a mutual trust fund that allows the suitable investors to participate in the fund trust by going through investment plans that are tax-efficient and sponsored by the Canadian government.
The investment was able to achieve the approval from the British Columbia Securities Commission and Ontario Securities Commission. On September 10, First Block Capital Inc. was the one to announce proudly that FBC Bitcoin Trust, their leading product, has achieved a mutual fund trust prominence.
Interestingly, the trust is now the foremost and only product for investment which has received an approval from the British Columbia Securities Commission and Ontario Securities Commission. It is an approval which offers the unit holders an exclusive opportunity for holding units of their bitcoin investments in Registered Retired Savings Plans and Tax-Free Savings Accounts.
However, this type of investment is only available to those who are deemed as qualified investors. Also, the firm further explained that their trust units can be characterized to be a qualified venture for a mutual trust fund in the Tax Act. Additionally, the firm has been successful in garnering 150 holders in just a year following the launch.
First Block Capital Inc. as a firm defines them to be the “Canada’s first and fully registered, dedicated cryptocurrency and blockchain investment company.” Moreover, the company holds the portfolio manager (PM), exempt market dealer (EMD) and, investment fund manager (IFM) licenses that make their booming presence valuable in the industry.
Marc van der Chijs, co-founder and chief investment officer, said that the goal of the firm is for investments to be more accessible, especially in the terms of asset and virtual currency. Their team is closer now at accomplishing this objective by the approval of authorities which now allows unit holders store units in tax-effective vehicles, as sponsored by the government and they will also be provided with daily liquidity.
There will soon be two more investment product funds coming along the way with the addition of bitcoin trust, as per the reports from the firm about the future endeavors. The first product is the ETF Active Blockchain Opportunities that is an ETF striving to deliver best companies that are in a chance for a worldwide secular theme.
The second product will be the Cryptocurrency Index Fund which will work at tracking the token performances as selected according to the management team of the company. About this product the company describes it to be the assessment of a token selection in an index fund that is according to the technology development in the industry, market liquidity, and market capitalization.
The company stores its funds in a cold storage vault of Xapo. The upcoming funds are dedicatedly working for providing the investors with a “transparent benchmark of new asset class”.