Canada has approved a CAD 222 billion-backed firm’s application to provide BTC sale and custody services. The FCC’s request was approved by Canada’s IIROC, making it the country’s first to provide the service.
Canadian investors will be relieved by the news. Previously, they would have had to look for a service outside of Canada. Most would do so through BTC custodians based in the United States. However, they can now invest directly through a local firm.
The new product will be targeted at institutional investors, according to FCC. Pension funds and asset managers are among those it hopes to attract. Mutual funds and exchange-traded funds (ETFs) with BTC holdings are among the others.
The news has created a lot of buzz in Canada. Pundits currently predict that the FCC’s approval will allow additional institutional companies to enter the market.
Scott Mackenzie, president of the FCC, is ecstatic about the approval. According to Mr. Mackenzie, the approval is a “really exciting step” for FCC, its clients, and Canadian institutional investors.
He went on to say that demand for crypto investment products was increasing. Furthermore, institutional investors wanted to invest in them through authorized venues, and FCC was such a platform, according to him.
A boon for Canadian corporate investors
Mackenzie expressed the FCC’s delight at the prospect of introducing the new product to the Canadian market. Mackenzie went on to say that they’d use their extensive experience and understanding to enhance the experience of their investors.
Canadian investors will benefit from FCC’s BTC custody service. It will, first and foremost, expose students to cutting-edge innovation. FCC built it with Blockchain(BC) technology and the same high standards as its other platforms.
Second, they will benefit from FCC’s expertise in business continuity and digital asset management. Fidelity Investments, the firm’s parent company, has led the way in crypto investments since 2014.
Finally, investors can use FCC’s Advantage, an internally curated cryptocurrency trading, and custody solution. The FCC advantage makes it easier for them to gain secure access to BTC trading and custodial services.
Corporate investments in cryptocurrency are skyrocketing
The FCC’s approval comes amid growing institutional interest in BTC investments. A recent CoinShares report supports this information. It demonstrates that institutional investors dominate capital inflows into BTC investments.
It also follows BTC’s recent strong performance. The king coin had an ATH of almost $68,000 at one point. It has also had more than $90 million in inflows, with $56 billion in assets under administration.
FCC isn’t squandering any time. It has applied for two BTC-based fund licenses. A BTC ETF and a BTC-backed mutual fund are the two options. The ETF will use the firm’s custodial service platform once it is approved.
Since the first BTC ETFs debuted in February, crypto-backed ETFs have been on the rise. In the United States alone, up to forty such products are currently pending regulatory approval.
FCC’s new platform is the company’s first foray into BTC investing. Fidelity Investments Inc, the company’s parent, is no stranger to the industry. Since 2018, it has provided the same service to its US consumers.
Fidelity Digital Assets has been providing BTC custody and exchange services to American corporate investors.