Fidelity Canada officially launched the Fidelity Advantage Bitcoin (ETF) and Fidelity Advantage Bitcoin ETF (Mutual Fund) on Thursday, marking the first such assets available in the country and confirming previous reports on the matter. The funds contain indices of Canadian FBTC, FBTC.U and US dollars and are listed on the Toronto Stock Exchange. Bitcoin ETFs from Fidelity aim to track price movements on the spot Bitcoin (BTC). Fidelity currently manages C $ 208 billion ($ 162.27 billion) in assets in the country.
The annual ETF management fee is 0.4%. Operating expenses and trading expenses are not available yet because the assets are still new. Over 98% of bitcoins bought by funds are kept in cold wallets.
The implications are significant for Canadian retail investors who open government-registered accounts, such as a tax-free savings account (TFSA) and buy Bitcoin ETFs. As the name implies, securities held in a TFSA are exempt from capital liabilities for capital gains.
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As of 2009, the annual TFSA contribution limit varies from C $ 5,000 ($ 3,903) to C $ 10,000 ($ 7,807). Unused contributions from previous years are carried forward accumulated. In addition, all realized profits accumulated on the TFSA account are credited to the contribution space. Hypothetically, if an investor buys $ 10,000 in a Bitcoin ETF and sells it for $ 20,000, the capital increase by reinvesting as much as $ 20,000, instead of $ 10,000, will qualify for the capital gains tax deduction.