Fidelity Clearing Canada ULC (FCC) launched a new institutional digital asset service. FCC is Canada’s first Investment Industry Regulatory Organization of Canada (IIROC) regulated entity to offer this digital currency trading and custody solution dedicated for institutional investors, including mutual funds and exchange-traded funds. Portfolio managers, dealers, mutual funds, exchange-traded funds, investment funds and other qualified institutional investors are eligible to access FCC’s institutional digital asset trading and custody solution.
With digital asset valuations reaching all-time highs and an increasing interest in alternatives, Canadian institutional investors are driving the demand to trade this emerging asset class on a reliable and secure platform. To meet this demand and better protect investors, the Canadian Securities Administrators (CSA) and IIROC published a new directive regarding their approach to regulating platforms that engage in the trading and custody of crypto assets and contracts involving crypto assets (Staff Notice 21-329). FCC obtained decisions from the CSA and an approval from IIROC that address the expectations set out in the Staff Notice as they relate to FCC’s new institutional digital asset service.
Fidelity Investments Canada ULC filed preliminary prospectuses for Fidelity Advantage Bitcoin ETF and Fidelity Advantage Bitcoin ETF Fund. Fidelity Advantage Bitcoin ETF will leverage FCC’s digital asset custodian services. The investment objective of both funds will be to aim to invest in bitcoin. These products are expected to be eligible for TFSAs (tax-free savings accounts) and registered plans.