On Thursday, Fidelity Canada officially launched the Allegiance Reward Bitcoin substitution-traded fund (ETF) and the Allegiance Advantage Bitcoin ETF Fund (common fund), marking the first such assets to be fabricated available in the country and confirming earlier reports on the affair. The funds have the tickers FBTC and FBTC.U, denominated in Canadian and The states dollars, and are listed on the Toronto Stock Commutation. Fidelity'south Bitcoin ETFs seek to track the operation of Bitcoin's (BTC) spot price. Fidelity currently manages CA$208 billion ($162.27 billion) in assets in the state.

The ETFs will have an annual management fee of 0.4%. Operating expenses and trading costs are not yet available as the assets are yet new. Over 98% of Bitcoin purchased past the funds is stored in common cold wallets.

The implications are significant for Canadian retail investors who open government-registered accounts, such as the Tax-Complimentary Savings Account (TFSA), and purchase Bitcoin ETFs. As the name implies, securities held in a TFSA are exempt from majuscule 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$5,000 ($three,903) to CA$10,000 ($7,807). Unused contributions from the previous years are carried forward, making them cumulative. In add-on, all realized profits accrued in the TFSA are added back into the contribution room. Hypothetically, if an investor purchases $x,000 in a Bitcoin ETF and sells them for $20,000, then further capital appreciation from reinvesting the full $twenty,000, not $10,000, will be eligible for capital gains tax-exemption.