First Block Capital, a Canadian cryptocurrency and blockchain investment company, has announced that its Bitcoin Trust has now become Bitcoin Mutual Fund.

This latest development means that investors will be able to place funds in registered accounts like Tax-Free Savings Accounts (TFSA) or Registered Retirement Savings Plans (RRSP).

The firm announced that the trust is available on NEO Connect, which is a fund distribution platform, under the ticker FBCBT. However, only accredited investors will have access to this trust while advisors will be able to trade the fund efficiently and easily, similar to how ETFs are traded.

First Block Capital added that NEO Connect has removed the 30-day redemption clause and has now enabled daily settlements.

NEO Connect is not related or connected with the NEO protocol, token or project.

First Block looking to increase exposure to the market

The aim of this latest development is to increase exposure to the cryptocurrency market. The CEO and co-founder of First Block, Sean Clark, noted in a statement that the firm provides simple and regulated access to Bitcoin for investors.

They do this by eliminating the complicated barriers to investing directly in Bitcoin. First Block, the leading cryptocurrency investment vehicle in Canada, is excited that their funds are accessible to accredited investors in the community.

Clark believes that NEO is the perfect partner for them as they look to grow their fund within their proven and rapidly expanding the network. He explains that an advisor will simply have to search for the symbol on NEO Connect, an existing equities trading platform.

The next and final step is to select the number of units to be acquired on behalf of their clients. Once the order is placed, it will be executed by the end of the day at net asset value as bid and ask spreads will not be available.

Using this investment tool, investors will have access to Bitcoin without them having to buy, hold or even manage the cryptocurrency. Trust units to be issued by First Block are considered an investment in a mutual fund trust.

First Block trust already a success

The First Block trust has been around for less than a year but has already surpassed 150 unitholders. First Block added that the trust has already received approval from the British Columbia Securities Commission and the Ontario Securities Commission.

NEO Connect, while commenting on this latest development, stated that being Canada’s sole fund distribution platform makes it possible for prospectus and private/offering memorandum funds to be acquired the way ETFs are done.

Joe Schmitt, president, and CEO of NEO Connect noted that for the first time in Canada, accredited investors working with investment advisors have the chance to seamlessly take positions in Bitcoin via the FBC Bitcoin Trust.

First Block is optimistic that investors will start moving units in the first month. The firm is currently working with registered broker-dealer firms to manage all transfers as they prepare for the fund’s launch.