First Block Capital Inc. is Canada’s ‘first and only’ regulated Bitcoin (BTC) fund and its has managed to acquire a mutual fund trust status that will permit investors to allocate their funds in a self-directed registered account.
According to a press release published on the 10th of September, investors of First Block Capitals flagship product, FBC Bitcoin Trust (which is available only for accredited investors) will now be able to entrust their holdings in an accounts such as Registered Retirement Savings Plans (RRSP) and Tax-Free Savings Account (TFSA).
Accredited investors fall under several categories within Canada, some of these types are as follows: a person that is registered as an adviser/dealer by security regulators, an individual that beneficially owns financial assets of an amount that exceed $1,000,000 pre taxes, or an individual of whose net income prior to taxes exceeds $200,000 or $300,000 in all of the two most recent calendar years.
The press release stipulates that FBC Bitcoin Trust shall be available for purchase on the decentralized self-regulated crypto payment system, NEO Connect. Investment advisors will now have the ability to purchase and redeem the FBC Bitcoin Trust in place of their accredited investor clients. FBC is expecting a large portion of their investors to begin the transfer of funds in the time span of the first month itself.
Marc van der Chijs, the Co-founder and Chief Investment Officer of First Block states, “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 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”.
FBC was granted permission by the British Columbia Securities Commission (BCSC) in September 2017 indicating its compliance with the requirements of operating within Ontario, Canada and British Columbia.