High net worth investors in Canada are now able to hold units of Bitcoin in their Registered Retirement Savings Plans (RRSP), and in their Tax-Free Savings Accounts (TFSA), as the first Bitcoin mutual fund gets approved.

Big News for Bitcoin

Canadian cryptocurrency investment company, First Block Capital, announced on September 10 that its flagship product, the FBC Bitcoin Trust, has gained the status of a mutual fund trust. This allows accredited investors to put their units into registered accounts such as RRSP or TFSA.

The product is available for purchase on the distribution platform NEO Connect and it goes under the ticker FBCBT. It also allows investors to receive exposure to Bitcoin without the necessity of acquiring, storing, or managing it.

Speaking on the matter, the Co-Founder and Chief Investment Officer at First Block Capital, Marc van der Chijs, says:

With this accomplishment, we continue to push Canada forward as a world leader in regulated blockchain and cryptocurrency investment vehicles. […] 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.

The US Falls Behind

While First Block anticipates the majority of FBCBT investors to begin moving their units within the first month, the US SEC has yet to rule on the application of the SolidX/VanEck bitcoin ETF.

Earlier in August, the Commission rejected 9 bitcoin ETF applications filed by ProShares, GrainteShares, and Direxion.

However, LiveBitcoinNews reported September 7 that President Trump has appointed a new SEC commissioner Elad Roisman. He is pro-crypto oriented and this may shift the voting power when it comes to the commodity-backed ETF application.

Speaking at a hearing before the Senate Banking Committee in July, Roisman said:

…the SEC must examine and re-examine its rules, regulations and guidelines to ensure that they are still working as intended to accomplish the SEC’s mission. This is most recently manifested in areas such as data protection and cybersecurity, as well as the emergence of new investments and technologies such as initial coin offerings and blockchain.

What do you think of Canada’s first approved Bitcoin mutual fund? Don’t hesitate to let us know in the comments below!

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