The Investment Industry Regulatory Organization of Canada (IIROC) has granted investment management firm Fidelity Clearing Canada ULC (Fidelity) approval to launch a bitcoin trading and custody platform. Fidelity will become the country's first bitcoin custodian and will cater to institutions like pension funds, portfolio managers, mutual funds and exchange-traded funds (ETFs).
Speaking in a statement, Fidelity's president Scott Mackenzie noted the importance of a regulated entity:
The demands for investing in digital assets is growing considerably and institutional investors have been looking for a regulated dealer platform to access this asset.
Institutional Canadian investors will no longer be required to use US-based custodians, potentially opening the door for more growth and development in Canada for crypto trading platforms. It has been a progressive year for the Great White North following the debut of an Ether-based ETF and VersaBank announcing a 'world first' bank issued stablecoin.
Having previously launched a similar product in the US as Fidelity Investments Inc. the move marks the company's first supply of a bitcoin trading platform in Canada. Fidelity currently have around CAD$209 billion (approx. AUD 228 billion) in assets under management and are looking forward to working with clients to invest in bitcoin, added Mackenzie:
We look forward to working with current and prospective clients and helping them get exposure to bitcoin
Fidelity have also filed a preliminary prospectus for Fidelity Advantage Bitcoin ETF and Fidelity Advantage Bitcoin ETF Fund in order to facilitate the investment in bitcoin by institutional investors.