Fidelity Canada officially launches Bitcoin ETF and mutual fund

Mexico, Veracruz-Llave, Texas

Published 3 years ago

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Fidelity Canada officially launches Bitcoin ETF and mutual fund

Mexico, Veracruz-Llave, Texas,

Published 3 years ago

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On Thursday, Fidelity Canada launched the Fidelity Advantage Bitcoin exchange-traded fund (ETF) and the Fidelity Advantage Bitcoin ETF mutual fund, which are the first assets of its kind available in the country and confirm reports earlier in the week on the theme. The funds are tickers FBTC and FBTC.U, denominated in Canadian and US dollars, and are listed on the Toronto Stock Exchange.

Fidelity's Bitcoin ETFs try to track the performance of the spot price of Bitcoin (BTC). Fidelity currently manages assets of C $208 billion ($162.27 billion) in the country.

ETFs will have an annual management fee of 0.4%. Operating expenses and trading costs are not yet available as the assets are still new. More than 98% of the Bitcoin acquired by the funds is stored in cold wallets.

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The implications are important for Canadian retail investors opening government-registered accounts, such as the Tax Free Savings Account (TFSA), and buying Bitcoin ETFs. As the name suggests, securities deposited in a TFSA are exempt from capital gains tax.