The OSC And BCSC Approved A Canadian Regulated Bitcoin Trust To Reach Mutual Fund Trust Status

Recently, the Ontario Securities Commission and the British Columbia Securities Commission approved a Canadian regulated bitcoin trust to reach mutual fund trust status. This leads to it allow eligible investors to invest on the trust through government-sponsored tax-efficient investment plans.

First Block Capital Inc. announced to the general public this past Monday that its flagship product, the FBC Bitcoin Trust, “has now achieved mutual fund trust status.” First Block Capital is Canada’s first fully registered crypto investment firm. The company was foundered by technology entrepreneurs committed to helping investors capture the value to be derived from the disruptive technologies built on Blockchain technology. 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 Saving Accounts (TFSA) and Registered Retirement Savings Plans (RRSP).”

Noting that the investment is available only to accredited investors, the company elaborated that “The trust units are now considered a qualified investment for a mutual fund under the Tax Act, having exceeded 150 unit holders within one year of launching.” The company describes itself as “Canada’s first fully registered, dedicated cryptocurrency and blockchain Investment Company” that possesses exempt market dealer (EMD), portfolio manager (PM) and investment fund manager (IFM) licenses. Marc van der Chijs, the company’s co-founder and chief investment officer 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 unitholders to place units in government-sponsored tax efficient vehicles, and by providing daily liquidity.”

Also, in addition to the bitcoin trust, the company has plans to launch two investment products. The company keeps its funds in Xapo’s cold-storage vault. The firm notes that the first of the two is the Active Blockchain Opportunities EFT which is “an actively managed ETF dedicated to uncovering the best companies exposed to this global secular theme.” As for the other product, it is the Cryptocurrency Index Fund that tracks the performance of tokens selected by the firm’s management team. The company finally explained that “The evaluation of selecting a token into your 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.”