Canada Approves Bitcoin Fund, Gets Defined as Mutual Fund Trust
There are various countries that are still struggling to regulate cryptocurrencies and all things related to blockchain technology. Meanwhile, Canada’s hard work in this regard seems to be paying off as it just regulated the first and only Bitcoin trust fund.
This means that Canadian citizens can now safely and legally invest through their retirement and tax-free savings accounts. To put this into perspective, with the help of this fund, unitholders can put their units in a self-directed registered account, for example, a tax-free savings account or a registered retirement savings plan.
The news comes courtesy of First Block Capital Inc., Canada’s first fully regulated PM, IFM, and EMD crypto investment firm. According to the official announcement, this trust is available for purchase on NEO Connect under the FBCBT tag.
“Since inception, First Block Capital has been committed to providing investors with regulated, titled and auditable exposure to investment vehicles based on blockchain and cryptocurrency. Our team is extremely proud to maintain our market-leading position and will continue to execute our vision of creating a fleet of investible products dedicated to space,” Sean Clark, the co-founder, and CEO of First Block Capital declared.
Good news for accredited investors
As per the Tax Act, this trust is considered a mutual fund trust. This is because the trust units exceed 150 unit holders within a year of its launch. In addition, the fund also offers the opportunity for investors to hold units of BTC investment in their Retirement Savings Plans and Tax-Free Savings Accounts.
“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 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,” Marc van der Chijs, the co-founder and CIO of First Block Capital commented.
This is a very important step for Canada in its relentless mission of adopting cryptocurrencies and blockchain tech. Furthermore, this puts Canada in a very good spot, especially considering that its neighboring country, the US, seems to be nowhere near this level of crypto adoption.