Fidelity Canada officially launches Bitcoin ETF and Bitcoin mutual fund

On Thursday, Fidelity Canada officially announced roll out Fidelity Advantage Bitcoin Exchange Traded Fund (ETF) and Fidelity Advantage Bitcoin ETF Fund (mutual fund), marking the first time such assets are available in the country, and Confirm earlier reports on the matterThe stock symbols of these funds are FBTC and FBTC.U, denominated in Canadian dollars and U.S. dollars, and are listed on the Toronto Stock Exchange. Fidelity’s Bitcoin ETF is designed to track Bitcoin (Bitcoin) Spot price. Fidelity currently manages 208 billion Canadian dollars (162.27 billion US dollars) Assets in the country.

The annual management fee of the ETF is 0.4%. Since the assets are still new, operating expenses and transaction costs are not yet available. More than 98% of bitcoins purchased with funds are stored in cold wallets.

This is of great significance to Canadian retail investors who open government-registered accounts (such as tax-free savings accounts (TFSA)) and purchase Bitcoin ETFs. As the name suggests, securities held in TFSA are exempt from capital gains tax.

related: VanEck’s Bitcoin spot ETF diversion strengthens the SEC’s prospects for cryptocurrencies

Since 2009, the TFSA’s annual contribution limit has ranged from CAD 5,000 (USD 3,903) to CAD 10,000 (USD 7,807). Donations that have not been used in previous years are carried forward, allowing them to accumulate. In addition, all realized profits generated in the TFSA will be added back to the contribution space. Assume that if an investor buys a $10,000 Bitcoin ETF and sells it at a price of $20,000, the further capital appreciation that reinvests the entire $20,000 (instead of $10,000) will be eligible for capital gains tax exemption.

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