A Canadian regulated bitcoin trust has achieved the mutual fund trust status, allowing eligible investors to invest in the trust through government-sponsored tax-efficient investment plans. The investment is approved by the Ontario Securities Commission and the British Columbia Securities Commission.
Mutual Fund Trust Status
First Block Capital Inc. announced on Monday, September 10, that its flagship product, the FBC Bitcoin Trust, “has now achieved mutual fund trust status.”
As such, the trust has become the “first and only” investment product approved by the Ontario Securities Commission (OSC) and the British Columbia Securities Commission (BCSC) to offer “unit holders the exclusive opportunity to hold units of a bitcoin investment in their Tax Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP).”
Noting that the investment is available only to accredited investors, the firm explained:
The trust units are [now] considered a qualified investment for a mutual fund trust under the Tax Act, having exceeded 150 unit holders within one year of launching.
The firm describes itself as “Canada’s first fully registered, dedicated cryptocurrency and blockchain investment company” that holds exempt market dealer (EMD), portfolio manager (PM) and investment fund manager (IFM) licenses. Its co-founder and chief investment officer, Marc van der Chijs, detailed:
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.
Two More Funds Coming Soon
In addition to the bitcoin trust, the firm plans to launch two investment products. The company’s funds are kept in Xapo’s cold-storage vault.
The first of the two is the Active Blockchain Opportunities ETF which is “an actively managed ETF dedicated to uncovering the best companies exposed to this global secular theme,” the firm describes.
The other product is the Cryptocurrency Index Fund that tracks the performance of tokens selected by the firm’s management team. The company explains, “The evaluation of selecting a token into our index fund is mainly determined by the development of its technology, market capitalization, and market liquidity. The goal is to provide investors with a transparent benchmark in this new asset class.”
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