Canada’s First Bitcoin Mutual Fund Launches, Attracting More Traditional Investors to Buy/Sell Bitcoin

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September 11, 2018 by
Canada’s First Bitcoin Mutual Fund Launches, Attracting More Traditional Investors to Buy/Sell Bitcoin

First Block Capital Inc. (First Block), has announced that the first and only regulated Bitcoin mutual fund, FBC Bitcoin Trust, is now available on NEO Connect under the ticker FBCBT. The trust is available to accredited investors only, and can be placed in a self-directed registered account such as RRSP or TSFA. NEO Connect allows daily settlements, removing the previous 30-day redemption clause.

About First Block Capital

First Block Capital, based in Vancouver, is Canada’s first registered cryptocurrency investment firm. First Block’s FBC Bitcoin Trust (FBCBT) allows qualified investors to obtain exposure to bitcoin without having to acquire, store or manage the underlying bitcoins. According to the Globe and Mail, FBCBT has approximately $20-million in assets under management, a significant drop from its peak of $40-million last year.

The trust has been approved by the BCSC (British Columbia Securities Commission) and OSC (Ontario Securities Commission), according to First Block Capital, and marks the first and only product approved of its kind in Canada.

Xapo GmbH of Zurich, Switzerland (“Xapo”) is the custodian of FBT’s bitcoin investments and, as such, is responsible for the execution of bitcoin transactions. Xapo is viewed as a leader in bitcoin security and will oversee the retention, security and transfer of bitcoins for FBT.

About NEO Connect

NEO Connect is Canada’s new fund distribution platform launched in May 2016 within the Aequitas Innovations Inc. group of companies. The company permits prospectus and private/offering memorandum funds to be bought and redeemed the way ETFs are, distributing 46 funds managed by three asset managers over 15 dealer networks and services nearly $600 million worth of assets.

Company Insights on FBCBT and NEO Partnership

“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.”

Sean Clark, Co-Founder and CEO of First Block


“Many accredited investors have been watching bitcoin appreciate in value, but until now they haven’t been able to invest in it through a managed fund as they would with a commodity like gold or silver,” added Marc van der Chijs, Co-Founder of First Block. “FBC Bitcoin Trust removes the complicated barriers to investing in bitcoin, making it more accessible to the mainstream investment community.”

Marc van der Chijs, co-founder and chief investment officer of First Block


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

Marc van der Chijs, co-founder and chief investment officer of First Block


“Today, for the first time in Canada, accredited investors working with investment advisors can seamlessly take positions in bitcoin through the FBC Bitcoin Trust. As the world evolves, we are very pleased our unique fund distribution platform can help the investment community access, with ease and efficiency, an ever-expanding spectrum of new and innovative asset classes.”

Joe Schmitt, president and CEO of NEO

FBCBT Makes it Easy for Traditional Investors to Buy/Sell Bitcoin

The trust will give investors exposure to bitcoin without having to acquire, hold, or manage the actual bitcoins. This is important because many traditional investors (particularly the older generations) do not understand how to buy bitcoins, but they do understand traditional stocks and ETFs. Using NEO Connect, investment advisors can purchase and redeem the FBCBT with the same ease and efficiency as ETFs. They simply look up the symbol using their existing equities trading tools, choose the number of units they want and hit “buy”. The order executes at the end of the day at NAV, without any bid/ask spreads.

“B2B reporter – Content Manager – Contributor – Fintech – Blockchain – Cryptocurrency”

Simon Chou is a B2B reporter and content manager specializing in technology and finance. He has worked with many clients in the fintech and blockchain space. He holds investment positions in bitcoin and other large-cap cryptocurrencies, and has been reporting on cryptocurrency since 2017. Currently, Simon is the content manager for a major cryptocurrency exchange @HybridBlockHQ.

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