On February 11, 2021, Canada became the first North American country to approve Bitcoin ETFs, pioneering a new frontier in cryptocurrency investments. These exchange-traded funds track Bitcoin's value, allowing investors to gain exposure without directly holding the cryptocurrency. Traded on the Toronto Stock Exchange, Bitcoin ETFs offer a regulated alternative to crypto exchanges.
👉 Discover how Bitcoin ETFs can diversify your portfolio
Top Canadian Bitcoin ETFs
1. Purpose Bitcoin ETF (BTCC)
- Ticker: TSX – BTCC
- MER: Capped at 1.50%
- AUM: $1.65 billion
- Key Features: First globally launched Bitcoin ETF, 100% cold storage security, eligible for TFSA/RRSP accounts.
2. 3iQ CoinShares Bitcoin ETF (BTCQ)
- Ticker: TSX – BTCQ
- MER: 1.25%
- AUM: $1.14 billion
- Key Features: Partnership with Coinshares, lower fee cap than BTCC.
3. Evolve Bitcoin ETF (EBIT)
- Ticker: TSX – EBIT
- MER: 0.75%
- AUM: $106.68 million
- Key Features: Low-cost option, launched shortly after BTCC.
4. CI Galaxy Bitcoin ETF (BTCX)
- Ticker: TSX – BTCX
- MER: 0.40% (lowest among peers)
- AUM: $525.6 million
- Key Features: Managed by CI Investments and Galaxy Digital.
5. Ninepoint Bitcoin ETF (BITC)
- Ticker: TSX – BITC
- MER: 0.70%
- AUM: $54.04 million
- Key Features: Focuses on carbon-neutral Bitcoin mining.
Understanding Bitcoin ETFs
What Is a Bitcoin ETF?
A Bitcoin ETF tracks Bitcoin’s price, enabling investors to trade it like a stock without managing private keys or wallets.
Bitcoin ETF vs. Bitcoin
- Bitcoin: A decentralized cryptocurrency requiring self-custody.
- Bitcoin ETF: A regulated fund holding Bitcoin, traded on traditional exchanges.
Pros and Cons of Bitcoin ETFs
| Pros | Cons |
|---|---|
| ✅ Safer than direct crypto ownership | ❌ Management fees apply |
| ✅ Traded on stock exchanges | ❌ No flexibility to swap cryptocurrencies |
| ✅ Allows short-selling | ❌ Price tracking may lag due to volatility |
How to Buy Bitcoin ETFs in Canada
Via Brokerages
Questrade: Buy ETFs like traditional stocks; no direct crypto trading.
- Fees: $0.01/share (min $4.95).
Wealthsimple Trade: Supports Bitcoin ETFs and direct crypto purchases.
- Fees: 0.4%-0.5% for managed accounts.
Via Crypto Exchanges
Platforms like BitBuy allow ETF purchases alongside cryptocurrencies after identity verification.
👉 Explore top platforms for Bitcoin ETF investing
FAQ
1. Are Bitcoin ETFs safe?
While safer than holding Bitcoin directly, they still carry market volatility risks.
2. Can I hold Bitcoin ETFs in a TFSA?
Yes, most Canadian Bitcoin ETFs are TFSA/RRSP eligible.
3. What’s the cheapest Bitcoin ETF?
CI Galaxy Bitcoin ETF (BTCX) has the lowest fee at 0.40%.
4. Do Bitcoin ETFs pay dividends?
No—returns are based solely on Bitcoin’s price movement.
5. How do Bitcoin ETFs store crypto?
All listed ETFs use 100% cold storage for security.
Final Thoughts
Bitcoin ETFs offer a balanced way to invest in cryptocurrency, combining Bitcoin’s growth potential with the familiarity of traditional markets. For cautious investors, they mitigate risks like wallet management while providing liquidity and regulatory oversight.
All data updated for 2024.