Blockchain Legal Resource: Canadian Bitcoin Fund Granted Mutual Fund Trust Status

Recently, Canadian investment firm First Block Capital Inc. reported that FBC Bitcoin Trust, which the firm bills as the "first and only open-ended bitcoin fund approved by Canadian regulators," has achieved mutual fund trust status under Canada's Federal Income Tax Act. Units of a mutual fund trust are considered qualified investments under registered plans such as Registered Retirement Savings Plans ("RRSPs") and Tax-Free Savings Accounts ("TFSAs").

Investment advisors can purchase units of FBC Bitcoin Trust on behalf of accredited investors and, now that the fund has been granted mutual fund trust status, units of the fund can be held in Canadian investors' RRSPs and TFSAs. First Block Capital claims FBC Bitcoin Trust is the only bitcoin...