Canada has its first cryptocurrency-focused Investment Industry Regulatory Organization of Canada (IIROC) as the local watchdogs approved Fidelity Clearing Canada (FCC) to launch a new institutional digital asset service.
- Canada has displayed a somewhat open-minded approach towards the cryptocurrency industry lately as it published a clear set of regulations a few months back and approved several Bitcoin ETFs in 2021.
- The country will have its first IIROC as well, as Fidelity Investments announced. The new regulatory-approved product will offer digital asset trading and custody solution for institutional investors only initially.
- However, the company intends to file for bitcoin-oriented mutual funds and exchange-traded funds that will allow retail investors to get on board as well.
“Leveraging this new platform, Fidelity Investments Canada ULC filed preliminary prospectuses for Fidelity Advantage Bitcoin ETF and Fidelity Advantage Bitcoin ETF Fund.” – reads the statement.
- The company explained that the launch of FCC comes amid the growing demand for cryptocurrencies globally as well as Canadian institutions getting more interested in the asset class.
- Scott Mackenzie, President of FCC, believes that institutional investors in Canada “have been looking for a regulated dealer platform to access this asset class” for a while, which is what the new initiative will facilitate.
“Fidelity Clearing Canada is pleased to offer our new solution, leveraging Fidelity’s global expertise and deep knowledge of digital assets for leading Canadian institutional investors.” – Mackenzie added.
- FCC’s institutional cryptocurrency trading and custody solution is already active, and portfolio managers, dealers, mutual funds, ETFs, and other qualified institutional investors can access it.
- Fidelity has been among the leaders in terms of cryptocurrency adoption. It has launched numerous products in the US and Europe as of last year. The firm recently initiated a survey among institutional investors, which concluded that 70% of them plan to buy digital assets in the near future.