Canada’s First Bitcoin Fund Now Available on NEO Connect
Investors in Canadian Cryptocurrency and Blockchain Investment Company, First Block Capital Inc (FBC) can now place their funds in self-directed registered accounts such as a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP). This development was announced recently by Neo Connect, the fund distribution platform, who stated that it had been granted mutual fund status by the BCSC (British Columbia Securities Commission) and OSC (Ontario Securities Commission), to allow investors do this. The trust, according to FBC, is the first of its kind to be approved in Canada.
The funds can be traded just as easily as Exchange Traded Funds (EFTs). The Trust has been offered to accredited investors and is available on NEO Connect, under the mark, FBCBT for First Block Capital Bitcoin Trust. This platformpermits daily settlements, bringing an end to the 30-day redemption clause, previously in place.
“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 statement, cited on Business Wire. “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.”
To trade, the advisors would have to find the symbol on NEO Connect with already existing equities trading tools and choose how many units their clients want to purchase. Once the order is made, it is executed at the end of the day and the proceeds are automaticallyadded into the client accounts.
“Today, for the first time in Canada, accredited investors working with investment advisors can seamlessly take positions in bitcoin through the FBC Bitcoin Trust,” said Joe Schmitt, president and CEO of NEO. “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.”
This is without question, an impressive development as the Trust unitsare considered a qualified investment in a mutual fund trust under the Tax Act.
"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," said Marc van der Chijs, co-founder and chief investment officer of First Block in the statement. “With this accomplishment, we continue to push Canada forward as a world leader in regulated blockchain and cryptocurrency investment vehicles.”
NEO Connect was launched in Canada in May 2016 as a platform for fund distribution within the Aequitas Innovations Inc. group of companies.