Fidelity Canada Announces Release of Bitcoin ETFs and Bitcoin Financial Services

On Thursday, Fidelity Canada announced the Fidelity Advantage Bitcoin Exchange Currency Exchange (ETF) and Fidelity Advantage Bitcoin ETF Fund (mutual fund) commemorating the country's first release of assets and collateral. The trademarks of these two currencies are FBTC and FBTC.U, including Canadian and US dollars, and are listed on the Toronto Stock Exchange. Fidelity's Bitcoin ETF intends to track the performance of the Bitcoin (BTC) price. Fidelity currently manages C $ 208 billion ($ 162.27 billion) of assets in Canada.

The annual management rate of the two ETFs is 0.4%. As the assets are still new, operating and selling costs have not yet been announced. Over 98% of Bitcoins are purchased with money stored in a wallet.

The impact is significant for Canadian traders who open government-managed accounts (like the Tax-Free Savings Account (TFSA)) and buy Bitcoin ETFs. As its name suggests, the securities held in the TFSA are exempt from tax credits.

As of 2009, annual TFSA grants ranged from CA $ 5,000 (US $ 3,903) to CA $ 10,000 (US $ 7,807). Unused funds from the previous year will be deployed and collected. In addition, all the benefits incurred in the TFSA will be added to the donation space. Assuming the trader buys a Bitcoin ETF for $ 10,000 and resells it for $ 20,000, the additional investment by redeeming the entire $ 20,000 instead of $ 10,000 is exempt from investment income.