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Last updated February 8, 2023
The world’s first bitcoin ETF was launched on the Toronto Stock Exchange (TSX) in February, 2021. Since then, several more bitcoin ETFs have launched. In this article we have covered the best bitcoin ETFs in Canada.
A bitcoin ETF is a suitable investment for both crypto investors and regular stock market investors. Crypto can easily be lost or stolen. When you buy crypto directly, it can be a hassle to sign up for a crypto exchange in Canada, buy and withdraw your assets, and then manage them safely. Any tiny mistake can result in you losing all of your crypto. You must trust yourself fully to keep your crypto safe. If you’re someone who loses things easily, or you’re not technologically literate, buying crypto on an exchange might not be best for you. In this case, a bitcoin ETF is a great option.
With a bitcoin ETF, you can get exposure to bitcoin without having to deal with private keys, crypto wallets, and crypto exchanges. This makes bitcoin ETFs a great choice for those who would rather have someone else manage their bitcoin investment.
A bitcoin ETF doesn’t give you custody of the bitcoin, which is a drawback for some. However, the major advantage of a bitcoin ETF in Canada is that you can buy a bitcoin ETF in either your TFSA, where gains are tax-free, or an RRSP, where deposits can reduce your income tax. A bitcoin ETF is therefore a great way to invest in bitcoin with potential gains being tax-free.
While there are usually high fees associated with managing the bitcoin ETF, the management fee can be cheaper than the capital gains tax you may have to pay on gains when you buy and sell bitcoin yourself. In this case, a bitcoin ETF can be a wise choice as part of a diversified portfolio.
If you’re interested in investing in a bitcoin ETF in Canada on the Toronto Stock Exchange, we’ve listed the different options below.
We hope this list will help you to decide which bitcoin ETFs are the best for investing in Canada. Our website uses referral links to the crypto exchanges mentioned in the article as a means of monetization. This supports our efforts to provide high-quality, independently researched content for Canadians. Please be assured that our ratings are not influenced by these referral programs and our advice is always in the best interest of our Canadian audience. We appreciate it if you choose to use the in-article links, but the decision is ultimately yours.
Disclaimer: All write-ups and articles do not constitute financial and legal advice in any way whatsoever but for information purposes only. When making financial and legal decisions and commitments, we strongly recommend you consult your professional financial and legal services provider.
5 Bitcoin ETFs Available in Canada
5.0/10
Launch
February 18, 2021
Assets
$1.6 billion (2.9339 BTC)
1. Purpose bitcoin ETF (BTCC)
- Tickers: BTCC (CAD, currency-hedged), BTCC.B (CAD, non-currency hedged) BTCC.U (USD, non-currency hedged)
- Fees: 1%
The Purpose Bitcoin ETF (BTCC) was launched on February 18, 2021. It is the world’s first bitcoin ETF. It has the largest holdings of any other Canadian crypto ETF. It does, however, have a high 1% management fee. Since the bitcoin ETF has not existed for a full year, the returns are not available yet. With BTCC, there is actual bitcoin in the fund, which is kept safely in cold storage.
You can buy this ETF withWealthsimple (you'll get $50 when you open and fund your Wealthsimple account with $150) or Questrade.
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5.0/10
Launch
November 30, 2021
Assets
$22.1 million (406 BTC)
Where to Buy
Wealthsimple Trade, Questrade
2. Fidelity Advantage bitcoin ETF (FBTC)
- Tickers: FBTC
- Fees: 0.4%
Fidelity’s bitcoin ETF has a much lower fee than some others at just 0.4%, but it has fewer bitcoins in its fund. Still, when you buy into FBTC, the fund buys real bitcoin on your behalf and stores it safely in cold storage.
You can buy this ETF with Wealthsimple (you'll get $50 when you open and fund your Wealthsimple account with $150) or Questrade.
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5.0/10
Launch
February 19, 2021
Assets
$126 Million (about 2000 BTC)
Where to Buy
Wealthsimple Trade, Questrade
3. Evolve bitcoin ETF (EBIT)
- Tickers: EBIT (CAD, unhedged) EBIT.U (USD)
- Fees: 0.75%
Evolve bitcoin ETF was launched shortly after Purpose Bitcoin ETF but with a slightly lower management fee of 0.75%. The EBIT fund holds its bitcoin in cold storage and offers two options for investors. You can buy the Canadian dollar ETF or the US dollar ETF. For every share at the current price you will receive 0.00037891 BTC. Returns are not yet available for this bitcoin ETF in Canada.
You can buy this ETF with Wealthsimple (you'll get $50 when you open and fund your Wealthsimple account with $150) or Questrade.
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5.0/10
Launch
March 5, 2021
Assets
$486 Million (about 10000 BTC)
Where to buy
Wealthsimple Trade, Questrade
4. CI Galaxy bitcoin ETF (BTCX)
- Tickers: BTCX.B (CAD, unhedged) BTCX.U (USD)
- Fees: 0.4%
The CI Galaxy bitcoin ETF is another option for Canadians. It has a relatively low management fee at 0.4% and has quite a large fund at $486 Million. Since this bitcoin ETF has not existed for a full year, returns are not yet available.
You can buy this ETF with Wealthsimple (you'll get $50 when you open and fund your Wealthsimple account with $150) or Questrade.
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5.0/10
Launch
March 31, 2021
Assets
$871 Million (about 19000 BTC)
Where to buy
Wealthsimple Trade, Questrade
5. 3iQ CoinShares bitcoin ETF (BTCQ)
- Tickers: BTCQ (CAD, unhedged) (BTCQ.U, USD, unhedged)
- Fees: 1%
3iQ is one of Canada’s largest asset managers with over $2.5 Billion worth of assets. Their bitcoin ETF holds $871 Million worth of bitcoin at the current price. The 3iQ bitcoin ETF has a relatively high management fee of 1%. The management fee plus operating costs cannot go above 1.25%. Any savings on operational costs is passed onto the fund.
You can buy this ETF with Wealthsimple (you'll get $50 when you open and fund your Wealthsimple account with $150) or Questrade.
Visit Site
Pros & Cons of Investing in a Bitcoin ETF
Pros of investing in a bitcoin ETF:
- Exposure to bitcoin
- No wallets or private keys to deal with
- Funds managed safely in cold storage
- Easy to buy/sell
- Keeps your investments in one place
- Eligible in tax-free and registered accounts (TFSA, RRSP)
- Tax advantages
Cons of investing in a bitcoin ETF
- High management fees (up to 1%)
- Only tracks bitcoin
- You won’t have custody of the bitcoin
- You must put trust in the asset manager and your brokerage
- Volatile asset
FAQs
What is a bitcoin ETF?
A bitcoin ETF is a managed bitcoin fund that you can buy shares in. Unlike other ETFs, you are not buying bitcoin stock in Canada because bitcoin is not a stock. Instead, the fund will buy actual bitcoin and store it safely in cold storage. Each share represents a unit of this bitcoin. When you buy shares in a bitcoin ETF, you are buying into a portion of the bitcoin owned and held by the asset manager. You do not have custody of the bitcoin itself, so you cannot transfer it to a private wallet.
How to buy a bitcoin ETF in Canada?
You can buy a bitcoin ETF in Canada on popular brokerages Wealthsimple Trade and Questrade. You can buy shares in a bitcoin ETF in your TFSA, RRSP, and personal accounts.
What’s the difference between an actual bitcoin and a bitcoin ETF?
When you buy bitcoin from a crypto exchange, you can withdraw the bitcoin to a private wallet giving you sole custody of it. You are buying actual bitcoin and storing it yourself. With a bitcoin ETF, you are buying shares in the fund. The fund manager holds and manages the bitcoin for you and everyone else invested in the fund. You cannot have access to bitcoin directly.
Is it worth investing in a bitcoin ETF?
A bitcoin ETF is worth investing in if you want to invest in bitcoin but don’t want to deal with the hassle of private wallets, navigating exchanges, and managing security yourself. A bitcoin ETF is also worth it if you’d like exposure to bitcoin in your tax advantageous accounts such as your TFSA or RRSP.
Conclusion
A Canadian bitcoin ETF may not appeal to everyone because the management fees are high and you don’t have custody of your bitcoin. However, bitcoin ETFs are great for people who want to invest in bitcoin but don’t understand how to use crypto exchanges or wallets. A crypto ETF in Canada gives people who don’t understand too much about crypto the opportunity to invest in it. A bitcoin ETF can also offer tax-free gains if you buy shares in your TFSA, which is great for crypto investors looking to save on tax. While a bitcoin ETF is a good investment opportunity, you should be aware that investing in a bitcoin ETF is the same as investing in the asset itself. If the price of bitcoin plummets, so will your bitcoin ETF investment. Bitcoin is highly volatile and you should use caution when investing.
Author
Oleg is a Canadian citizen & crypto expert who has been trading since 2016. He started out with Coinbase, Kraken and Peer-to-Peer exchanges. After some time, centralized exchanges started charging crazy fees to their users.
He decided to review different crypto exchanges that operate in Canada and start a Youtube channel in order to educate Canadians on what kinds of things are going inside each one while giving them unbiased advice. On top of that, Oleg also has experience with NFT, airdrops, and crypto staking and he is constantly checking on new crypto assets.
His writing has been featured in popular Canadian media sources such as Toronto Sun and Ottawa Citizen.
