The fund works with three series: A, F, and P. Fees might vary between 0.40% and 0.90%. The parent company’s goal is to grant better access to the first cryptocurrency.
A new bitcoin mutual fund (BTC) went to the public in Canada with a unique aiming on retail investors. The CI Bitcoin Fund is already on the stock for traders, contributing with 500 US or Canadian dollars.
The product bases on three series A, F, and P, with handling commissions ranging from 0.40% (series F), 0.90% (Series A), and rates that could face negotiations in the case of series P. According to CI Global Asset Management, this investment fund would be the first of its kind in North America with a “dedicated bitcoin exposure.”
The company explained in detail that the fund indirectly sets an investment in bitcoin through the CI Galaxy Bitcoin ETF that appears on the Toronto Stock Exchange list under the identifier BTCX. The latter does invest directly in the first cryptocurrency with segregated cold storage.
The Company Explained Clearly How the Mutual fund Works
“This fund may ok for you if: you want to gain exposure to bitcoin, you want long-term capital growth, and you can tolerate high risk (…) The value of the fund can go down or up. You can lose money,” emphasized CI Global Asset Management.
For Kurt MacAlpine, CEO of CI Financial Corp (the fund’s parent company), the primary mission is to provide exposure to the retail market through an institutional platform. In MacAlpine’s opinion, the product grants more accessible access to bitcoin and many other digital assets.
The income distribution is done annually, while investors can inject new funds into their portfolio from $ 25. The CI Bitcoin Fund also has two other series: the I and the W; however, these alternatives are not available for retail investments.
Mutual funds and ETFs, or exchange-traded funds, are investment tools with a few different features. In the first case, investors pool their funds in stocks or bonds, for example, to obtain benefits in an estimated period. An ETF manages itself more passively than when it follows a specific market index.
Bitcoin Presents Itself as a Regulated Investment Alternative
Canada is now the North American leader in investment products associated with bitcoin and other cryptocurrencies. Local regulatory authorities have been even more outspoken than their US counterpart.
Since 2018, the British Columbia Securities Commission and the Ontario Securities Commission (OSC) are friends with the launch of this kind of fund. Their decisions are different from those made by the US Securities and Exchange Commission, which has shown a severe rejection regarding bitcoin ETFs in the past.
Canadians could already invest in the FBC Bitcoin Trust, a mutual fund or trust in which operators would allocate funds through tax-free savings accounts or retirement plans.
By: Jenson Nuñez