# Fidelity Canada officially launches Bitcoin ETF and Bitcoin Mutual Fund
“# Fidelity Canada officially launches Bitcoin ETF and Bitcoin Mutual Fund ”
The ETFs will have an annual management fee of 0.4%. Operating expenses and trading costs are not yet available as the assets are still new. Over 98% of Bitcoin purchased by the funds is stored in cold wallets.
The implications are significant for Canadian retail investors who open government-registered accounts, such as the Tax-Free Savings Account (TFSA), and purchase Bitcoin ETFs. As the name implies, securities held in a TFSA are exempt from capital gains tax liabilities.
Related: VanEck’s Bitcoin spot ETF shunt solidifies SEC’s outlook on crypto
Since 2009, the annual contribution limit for a TFSA has ranged from CA$5,000 ($3,903) to CA$10,000 ($7,807). Unused contributions from the previous years are carried forward, making them cumulative. In addition, all realized profits accrued in the TFSA are added back into the contribution room. Hypothetically, if an investor purchases $10,000 in a Bitcoin ETF and sells them for $20,000, then further capital appreciation from reinvesting the full $20,000, not $10,000, will be eligible for capital gains tax-exemption.
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