NEO Connect, Canada’s first Bitcoin fund is launched to accredited investors
Whilst the idea of a Bitcoin ETF may be a way away for US investors, across the border in Canada, it is already becoming a reality.
First Block Capital, the countries first fully-regulated cryptocurrency investment firm has broken new ground as it becomes the only open-ended Bitcoin fund that has been approved by Canadian regulators. The FBC Bitcoin Trust has become the first fund that will allow accredited investors to hold Bitcoin investment in registered accounts such as retirement savings plans and tax-free savings accounts.
This fund will allow HNWIs to invest in a seamless manner in Bitcoin through their investment advisors. These investments will be traded on the asset management platform NEO Connect and it is expected that traders will be allowed to execute moves with the same ease as with an ETF.
Founder and CEO of First Block Capital said:
“The longer redemption time frame was a feature that we felt really hurt the fund and the reason why we didn’t reach hundreds of millions [in assets] coming out of the gate. … Investors wanted more liquidity in this sector and we are pleased to now be able to offer advisers daily trading capabilities for those discretionary accounts.”
NEO Connect services more than $600 million in assets and as a platform, they have pushed many regulatory boundaries to create an “ever-expanding spectrum of new and innovative asset classes” with the aim of drawing a healthy client base over 46 funds.
First Block’s new fund will initially manage $20 million giving it a big start in the industry. CEO Sean Clark believes that in the face of sub-$200 billion market capitalisation, the current situation is a much-needed correction.
“The price spike in December was from a lot of speculation and the market getting ahead of itself. Now that it has settled down, now is the time to enter the market.”
Clark believes that the decision of Goldman Sachs’ to postpone their Bitcoin trading desk was down to nothing more than a change of focus.
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