A Canadian cryptocurrency and blockchain investment company, First Block Capital Inc., has reported that its FBC Bitcoin Trust, its own bitcoin trust, has gained mutual fund status in Canada. Now it can be allowed to investors to put funds in registered accounts like Tax Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP). NEO Connect, a fund distribution platform, allows daily settlements and licensed investors can trade fund through this channel.
Sean Clark, the CEO and co-founder of First Block, mentioned that the aim of the company is to remove complex hardships for crypto investment and give efficiency to investors. He said, “The crypto market is expanding fast and NEO is the perfect partner to grab the chance to grow fund in a secure network. We are happy to create accredited investor community which will make fund trade possible.”
It works like this: There is the symbol on NEO Connect and advisors select the number of units they want to purchase for their clients. Then, they hit “buy”, the order has transferred at the end of the day at net asset value without “bid” or “ask” spreads. The results will automatically blend into the clients’ accounts. The trust will expose investors to bitcoin without possessing actual bitcoins. Trust units are considered a qualified investment in a mutual fund trust under the Tax Act, and it took less than a year the fund exceeded 150 unit owners. The trust has authorized by the British Columbia Securities Commission(BCSC) and Ontario Securities Commission(OSC).
Joe Schmitt, the president and CEO of NEO, said that as the blockchain market is non-neglectable, it is a pleasure to launch the unique fund distribution platform to assist investment community access with ease and efficiency in Canada. Furthermore, Marc van der Chijs, the co-founder and chief investment officer of First Block, stated that NEO will put efforts to invest in the digital assets more accessible by agreeing unit holders to place units in tax efficient vehicles sponsored by the government and providing daily flow through NEO Connect. He pointed out that Canada can become a leading country in blockchain and cryptocurrency investment vehicles with all efforts and achievements.
Now NEO is preparing to begin the service. First Block expects FBC Bitcoin Trust investors will start to move units for the first month. Registered broker dealer companies will take charge of all transfers to prepare the fund’s launch. NEO Connect will distribute 46 funds controlled by three asset managers over 15 dealers network with almost $600 million worth of assets.
Author: Jieun Lee