Quote from: timerland on September 17, 2018, 09:39:26 PM

Quote from: Betwrong on September 13, 2018, 10:11:41 AM

Ontario Securities Commission and the British Columbia Securities Commission are more or less the same as US SEC, if I'm not mistaken. So, this is a good example for SEC on how to deal with technologies of the future. You can't either ignore them or reject them continuously because with this kind of behavior you may find yourself stuck in the past to such a degree that no one respects you anymore.

It's not dealing with technology. It's dealing with bitcoin derivatives. We don't even know if this trust/fund are actually holding bitcoins on behalf of the investors. I have a feeling that more or less they are simply trading bitcoin futures or options instead of actual, real bitcoins.

based on an interview with first block's CEO, it looks like it's physically backed by bitcoins. it sounds quite like the bitcoin investment trust (GBTC) run by grayscale:

Quote

DJ: How will the FBC Bitcoin Trust work?
Clark: "FBC Bitcoin Trust is the world's first regulated open ended Bitcoin Trust. It is simple, you give us money and we buy Bitcoin with it. The Trust charges a 1.5% management fee because we keep your Bitcoin safe giving you piece of mind. Further, we allow scalability so that you can now easily access large quantities of Bitcoin without any hassle, that is our value proposition."

Quote from: timerland on September 17, 2018, 09:39:26 PM

I wouldn't get too hyped about this news to be honest. It's obviously not bad news considering the fact that it allows investors to get an investment into bitcoin in a tax effective way, but it's most likely not going to benefit any average bitcoin users, nor is it going to be even anything related to actual bitcoins stored on chain tbh.

the trust is open-ended, meaning they buy BTC on the open market as demand requires. so it depends how many wealthy people want exposure to bitcoin in their tax-free/retirement accounts (it's only for accredited investors, which means 1 million CAD liquid assets or 200k CAD income per year).