Sean Clark, formerly of shoes.com, has teamed up with Marc van der Chijs, to launch the FBC Bitcoin Trust.
Two Vancouver-based entrepreneurs have teamed up to make the world鈥檚 digital currency a little more accessible.
Launched by Vancouver鈥檚 Sean Clark and Marc van der Chijs, founder of First Block Capital, in partnership with FrontFundr, an online investment platform, the FBC Bitcoin Trust gives Canadians an easy way to invest in bitcoin.
鈥淥ur team is excited to bring new opportunities for investors in Canada,鈥� Clark said. 鈥淏eing a market leader in the cryptocurrency space will only open more doors and create new investment avenues. As demand for bitcoin and other cryptocurrencies increases, it鈥檚 important for us to help educate the market and provide an accessible avenue for people to invest.鈥�
The open-ended unit trust enables accredited investors to get exposure to the price of bitcoin without having to worry about buying and securing bitcoin, which has been a challenge, Clark said.
The fund was approved last week by the B.C. Securities Commission, making it the first registered investment fund manager in the country solely dedicated to cryptocurrency investments.
鈥淐ryptocurrency investments are a new and novel form of investing in Canada,鈥� said Zach Masum, manager of legal services, capital markets regulation and leader of the commission鈥檚 tech team. 鈥淭his first registration allows access to bitcoin investments, while providing the BCSC with unique mechanisms to monitor operations in a rapidly developing area.鈥�
The trust is also registered in Ontario.
鈥淢any accredited investors have been watching bitcoin appreciate in value, but until now they haven鈥檛 been able to invest in it through a managed fund as they would with a commodity like gold or silver,鈥� van der Chijs said. 鈥淔BC Bitcoin Trust removes the complicated barriers to investing in bitcoin, making it more accessible to the mainstream investment community.鈥�
Released in 2009, bitcoin is a digital asset that was designed to work as a currency. It is purchased, used and stored online. While it can be used at a growing number of businesses in 麻豆传媒映画and around the world, Clark said that First Block Capital believes that bitcoin will be used as a store of value, like gold, and not as a replacement for other currencies.
One of the big challenges with bitcoin is keeping it safe and secure, Clark said. Previously, purchasing bitcoin required a high level of technical knowledge to navigate the transaction process. Once purchased, investors are then required to securely store the bitcoin online.
鈥淲e鈥檙e solving the security factor for you,鈥� Clark said.
鈥淭his is for non-crypto people, which is 99.9 per cent of the population.鈥�
The new venture aims to simplify the process, allowing investors to buy units of the trust. It removes barriers for people who want to get into the bitcoin market through traditional investment channels, Clark said. He added that once purchased through the trust, the units can be transferred to a self-directed RRSP or TFSA.
According to the Canadian Bitcoin Index (cbix.ca/charts) bitcoin is currently valued around $4,300 CAD, down from a high of $6,135 last week.
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