Canada gets its first Bitcoin fund, now available on Neo connect
Canada is slowly and steadily making its mark in the cryptocurrency and blockchain arena. Toronto-based NEO Connect has announced that the First Block Capital Bitcoin Trust (FBC Bitcoin Trust) is now available on its platform. It is the only open-ended Bitcoin fund approved by the Canadian regulators, and it enables accredited investors to get exposure to Bitcoin.
This will allow investors to place funds in registered accounts, such as a tax-free savings account (TFSA) or registered retired savings plan (RRSP). The trust is available on NEO Connect, under the ticker FBCBT, and is available to accredited investors only. The platform distributes 46 funds from three asset management firms across 15 dealer networks.
Paving the way for investment exposure to Bitcoin
“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.
“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.”
The process is very simple. The advisors search for the symbol on NEO Connect with existing equities trading tools and select the number of units they want to purchase on behalf of their clients. Once they hit “buy,” the order executes at the end of the day at net asset value.
The trust has got the approval of the BCSC (British Columbia Securities Commission) and OSC (Ontario Securities Commission) and marks the first and only product approved of its kind in Canada. This latest development showcases the growing stature of Canada in the blockchain and crypto arena.
“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.”
All set for the launch
First Block expects most FBC Bitcoin Trust investors will start to move units in the first month. Registered broker-dealer firms which First Block has worked with will manage all transfers to prepare for the fund’s launch.
NEO Connect is Canada’s new fund distribution platform launched in May 2016 within the Aequitas Innovations Inc. group of companies and it is available to all investment dealers at no cost and streamlines the fund purchase and redemption process.
Image via Shutterstock
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