Canada Has First Regulated Bitcoin Fund, FBC Bitcoin Trust Can be Traded on NEO Connect

Toronto-based NEO Connect announced on Monday that the First Block Capital Bitcoin Trust (FBC Bitcoin Trust) was available on its platform. The fintech company claims it to be Canada’s first Bitcoin fund and the only regulated investment product of its kind. The FBC Bitcoin Trust, the flagship product of Vancouver-based First Block Capital, is open exclusively to accredited investors. They can store the fund units in a self-directed registered account like a Tax-free savings account (TFSAs) or a Registered Retirement Savings Plan (RRSP).

The new product can be found on the NEO Connect platform under the ticker FBCBT. The platform distributes 46 funds from three asset management firms across 15 dealer networks.

First Block Capital co-founder and CEO Sean Clark commented:

“At First Block, we provide investment exposure to Bitcoin by removing the complicated barriers to investing directly in the cryptocurrency. As the market leader in providing investment vehicles based on blockchain and cryptocurrency in Canada, we are very happy to make our fund more accessible to the accredited investor community.” “In this fast-changing world, NEO is the perfect partner with whom we have seized the opportunity to grow our fund within their proven and rapidly expanding fund distribution network,” he added.

NEO Connect allows investment advisors to buy and exchange FBCBT in a manner similar to exchange-traded funds (ETFs). They just have to find the ticker, specify the number of units they are ready to purchase and click “buy.” The order is executed at the end of the day at net asset value (NAV) without taking into account any spreads. The position will then automatically move into the user’s account.

Jos Schmitt, President & CEO of NEO Connect commented:

“Today, for the first time in Canada, accredited investors working with investment advisors can seamlessly take positions in Bitcoin through the FBC Bitcoin Trust.”

Marc van der Chijs, co-founder and CIO at First Block, said that the move was part of a broader strategy to make Canada a world leader in the context of regulated cryptocurrency investment products. His company aims to make crypto investments more accessible through the launch of traditional products that provide liquidity.

In February 2018, we reported that Canadian regulators approved the launch of a blockchain-based ETF developed by Harvest Portfolios. At that time, it was the first investment product of its kind in Canada. The ETF is traded on the Toronto Stock Exchange (TSE).