[2018-09-13] Canadian Regulated Bitcoin Trust Achieves Mutual Fund Trust Status

[Terraformer]

A Canadian regulated bitcoin trust has achieved the mutual fund trust status, allowing eligible investors to invest in the trust through government-sponsored tax-efficient investment plans. The investment is approved by the Ontario Securities Commission and the British Columbia Securities Commission.

Mutual Fund Trust Status

First Block Capital Inc. announced on Monday, September 10, that its flagship product, the FBC Bitcoin Trust, “has now achieved mutual fund trust status.”

As such, the trust has become the “first and only” investment product approved by the Ontario Securities Commission (OSC) and the British Columbia Securities Commission (BCSC) to offer “unit holders the exclusive opportunity to hold units of a bitcoin investment in their Tax Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP).”

Noting that the investment is available only to accredited investors, the firm explained:

''The trust units are [now] considered a qualified investment for a mutual fund trust under the Tax Act, having exceeded 150 unit holders within one year of launching.''

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[Betwrong]

Ontario Securities Commission and the British Columbia Securities Commission are more or less the same as US SEC, if I'm not mistaken. So, this is a good example for SEC on how to deal with technologies of the future. You can't either ignore them or reject them continuously because with this kind of behavior you may find yourself stuck in the past to such a degree that no one respects you anymore.

[Haruderty]

Ontario Securities Commission and the British Columbia Securities Commission are more or less the same as US SEC, if I'm not mistaken. So, this is a good example for SEC on how to deal with technologies of the future. You can't either ignore them or reject them continuously because with this kind of behavior you may find yourself stuck in the past to such a degree that no one respects you anymore.

If that is the case, then the SEC in the US should learn from their Canadian counterpart.

[timerland]

Ontario Securities Commission and the British Columbia Securities Commission are more or less the same as US SEC, if I'm not mistaken. So, this is a good example for SEC on how to deal with technologies of the future. You can't either ignore them or reject them continuously because with this kind of behavior you may find yourself stuck in the past to such a degree that no one respects you anymore.

It's not dealing with technology. It's dealing with bitcoin derivatives. We don't even know if this trust/fund are actually holding bitcoins on behalf of the investors. I have a feeling that more or less they are simply trading bitcoin futures or options instead of actual, real bitcoins.

Also, this is not an ETF, which is what the SEC is primarily concerned with deciding at the moment.

I wouldn't get too hyped about this news to be honest. It's obviously not bad news considering the fact that it allows investors to get an investment into bitcoin in a tax effective way, but it's most likely not going to benefit any average bitcoin users, nor is it going to be even anything related to actual bitcoins stored on chain tbh.

[figmentofmyass]

Ontario Securities Commission and the British Columbia Securities Commission are more or less the same as US SEC, if I'm not mistaken. So, this is a good example for SEC on how to deal with technologies of the future. You can't either ignore them or reject them continuously because with this kind of behavior you may find yourself stuck in the past to such a degree that no one respects you anymore.

It's not dealing with technology. It's dealing with bitcoin derivatives. We don't even know if this trust/fund are actually holding bitcoins on behalf of the investors. I have a feeling that more or less they are simply trading bitcoin futures or options instead of actual, real bitcoins.

based on an interview with first block's CEO, it looks like it's physically backed by bitcoins. it sounds quite like the bitcoin investment trust (GBTC) run by grayscale:

DJ: How will the FBC Bitcoin Trust work?
Clark: "FBC Bitcoin Trust is the world's first regulated open ended Bitcoin Trust. It is simple, you give us money and we buy Bitcoin with it. The Trust charges a 1.5% management fee because we keep your Bitcoin safe giving you piece of mind. Further, we allow scalability so that you can now easily access large quantities of Bitcoin without any hassle, that is our value proposition."

I wouldn't get too hyped about this news to be honest. It's obviously not bad news considering the fact that it allows investors to get an investment into bitcoin in a tax effective way, but it's most likely not going to benefit any average bitcoin users, nor is it going to be even anything related to actual bitcoins stored on chain tbh.

the trust is open-ended, meaning they buy BTC on the open market as demand requires. so it depends how many wealthy people want exposure to bitcoin in their tax-free/retirement accounts (it's only for accredited investors, which means 1 million CAD liquid assets or 200k CAD income per year).

[BitHodler]

I wouldn't get too hyped about this news to be honest. It's obviously not bad news considering the fact that it allows investors to get an investment into bitcoin in a tax effective way, but it's most likely not going to benefit any average bitcoin users, nor is it going to be even anything related to actual bitcoins stored on chain tbh.

It does concern actual Bitcoins.

Even if the demand is on the lower side, it's better than nothing. Everything that might help to reduce the availability of coin supply is a plus in my book, and remember, this only concerns one country.

In the coming years more countries will follow and offer people the same options, and the US might not even be that far behind when it comes to their 401k. Imagine what happens if it takes off based on solid demand.

I'm extremely bullish on Bitcoin and will continue to accumulate more. The lower the price sinks the more coins the same amount of fiat will allow me to buy, so bring it on bear market!