Both the Ontario Securities Commission (OSC) and the British Columbia Securities Commission (BCSC) granted approval for First Block Capital, Inc. to operate as a mutual trust fund, according to a Business Wire press release.
This means accredited investors can now deposit their funds into the company’s flagship product, the FBC Bitcoin Trust. The funds can be held in a Registered Retirement Savings Plan (RRSP) and/or a Tax-Free Savings Account (TFSA).
The press release states that the FBC Bitcoin Trust will use the services of NEO Connect to distribute the funds of accredited investors who want to place holdings into the bitcoin trust.
Coin Telegraph quotes Marc van der Chijs, the Co-founder and Chief Investment Officer of First Block Inc. as stating:
“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 unit holders 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.”
As Ethereum World News informs its readers, the bitcoin trust fund allows investors to access bitcoin without having to actually hold or manage the cryptocurrency itself. As well, under the Tax Act, a trust is given the same status as a credible investment and since the tax burden is more lenient for savings and retirement accounts, it makes it an appealing offer to those accredited Canadian investors who want to include a form of bitcoin in their traditional portfolios.
While the cryptocurrency community may disagree as to whether these sort of investment options help of harm cryptocurrencies, it’s nonetheless a sign of the growing interest, understanding, and acceptance of cryptocurrencies.