First Block Capital releases details on bitcoin investment fund

By The IJ Staff | September 15 2017 11:30AM

Photo: Freepik

First Block Capital has announced details of a private placement offering of units of FBC Bitcoin Trust (FBT) – an investment fund that invests exclusively in bitcoin.

First Block was recently granted registration as an investment fund manager in B.C. and Ontario, becoming the first registered investment fund manager in Canada dedicated solely to cryptocurrency investments.

“Our team is excited to bring new opportunities for investors in Canada,” said Sean Clark, Co-Founder and CEO of First Block in a Sept. 14 announcement. “Being a market leader in the cryptocurrency space will only open more doors and create new investment avenues. As the demand for bitcoin and other cryptocurrencies increases, it’s important for us to help educate the market and provide an accessible avenue for people to invest.”

Tracks market price of bitcoin

FBT has been designed to track the market price of bitcoin, less the fund’s liabilities and expenses, by investing FBT’s assets in bitcoin. “FBT will allow qualified investors to obtain exposure to bitcoin in an efficient manner without having to acquire, store or manage the underlying bitcoins,” says First Block.

Xapo GmbH of Zurich, Switzerland (Xapo) is the custodian of FBT’s bitcoin investments and is also principally responsible for the execution of transactions in bitcoin for FBT.

Initial closing September 28

First Block has engaged GMP Securities L.P. to act as lead agent in a syndicated private placement offering of units of FBT. The initial closing of the agency offering is expected to occur on or about September 28, 2017, with subsequent closings on or about October 5, 2017 and October 12, 2017. Prospective investors are encouraged to obtain a copy of the Confidential Offering Memorandum dated September 12, 2017 and related offering documents, which outline the key terms and risk factors of investing in FBT.

Accredited investors

“Many accredited investors have been watching bitcoin appreciate in value, but until now they haven’t been able to invest in it through a managed fund as they would with a commodity like gold or silver,” added Marc van der Chijs, Co-Founder of First Block. “FBC Bitcoin Trust removes the complicated barriers to investing in bitcoin, making it more accessible to the mainstream investment community.”

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