Fidelity Canada officially launches Bitcoin ETF and Bitcoin Mutual Fund

On Thursday, Fidelity Canada officially launched the Fidelity Gain Bitcoin Exchange Traded Fund (ETF) and the Fidelity Edge Bitcoin ETF (mutual fund), which are the first such assets to be offered in the country and confirm the previous reports received on the matter. The funds are ticked FBTC and FBTC.U, denominated in Canadian dollars and US dollars, and are listed on the Toronto Stock Exchange. Fidelity Bitcoin ETFs aim to track the performance of the spot price of Bitcoin (BTC). Fidelity currently has $ 208 billion ($ 162.27 billion) in assets under management in the country.

An annual management fee of 0.4% is charged for ETFs. There are no operating or business costs yet, as the property is still new. Over 98% of the bitcoins bought by funds are stored in cold wallets.

These effects are important for Canadian retail investors opening government-registered accounts such as Tax Free Savings Accounts (TFSAs) and buying Bitcoin ETFs. As the name suggests, securities held in the TFSA are exempt from capital gains tax.

Related: VanEck’s Bitcoin Location ETF Shunt Boosts SEC Prospects on Crypto

As of 2009, the annual contribution limit for TFSA has been between CAD 5,000 (US $ 3,903) and CAD 10,000 (US $ 7,807). Unused contributions from previous years are transferred to the provision. In addition, any realized profits accrued in the TFSA are added to the contribution room. If an investor buys $ 10,000 in a Bitcoin ETF and sells it for $ 20,000, the capital appreciation will hypothetically come further from reinvesting the entire $ 20,000 instead of $ 10,000.

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page