Best Bitcoin ETFs in Canada 2022: Invest Like a Pro

Cryptocurrencies have been on a steady rise in popularity, and that’s not surprising given how cryptocurrencies like Bitcoin started breaking all expectations.

After reaching unbelievable valuations on April 24, 2021, at its high point – $64,000 to be exact (and going up even further) – many people saw this as an opportunity worth taking advantage of by investing their money into crypto coins such as Bitcoin.

Bitcoin ETFs are becoming more popular as they can help investors diversify their portfolios with Bitcoin without having the hassle of maintaining cold wallets and public keys yourself, which can be hard work!

The recent sharp rise in this asset class with highly volatile markets has attracted investors who are willing to take on the risk.

This article discusses the best Bitcoin ETFs available in Canada, their essential characteristics, ways to invest in them, and their associated advantages and disadvantages.

Best Canadian Bitcoin ETFs

It’s time to invest in Bitcoin! These are the best Bitcoin ETFs for Canadians who want a piece of this hot cryptocurrency:

1. Purpose Bitcoin ETF (BTCC)

BTCC is the ticker symbol
Fees: 1%
1.3Billion in Assets Under Management (AUM)
CAD & USD
Date of Inception: February 18, 2021
TFSA/RRSP Acceptable: Yes
Bitcoin Holdings (as of September 20, 2021): 21,022

The Purpose Bitcoin ETF bears the distinction of being the world’s first bitcoin ETF, not just in Canada.

Since its inception in February 2021, the ETF has grown in popularity, topping $1 billion in assets under management within 30 days of trading.

It is listed on the Toronto Stock Exchange (TSX) and comes in three distinct flavors, each with its own ticker symbol:

  • CAD Non-Currency Hedged: BTCC
  • CAD Currency Hedged: BTCC.B
  • USD Non-Currency Hedged: BTCC.U

The BTCC ETF established a precedent by storing all of its underlying assets in cold storage.

Although the management fee is set at 1%, the MER, or total cost of the Purpose Bitcoin ETF, is unknown at this time.

However, the MER will be limited to 1.50%, with any savings passed on to ETF investors.

It is premature to make any judgments about the ETF’s performance or returns.

Nevertheless, you may anticipate it to track Bitcoin’s performance, minus the management expense ratio (MER) – at least for the USD ETF.

Investments in the financial instrument can be made through TFSAs, RRSPs, and non-registered accounts.

The two CAD ETFs’ returns will be susceptible to some currency risk; however, the risk is hedged in the case of BTCC.B.

2. Ninepoint Bitcoin ETF (BITC)

BITC is the ticker symbol
Management Fees: 0.70%
USD90.4 Million in Assets Under Management (AUM)
CAD & USD
Date of Listing: May 6, 2021
TFSA/RRSP Acceptable: Yes

Ninepoint Bitcoin ETF (BITC) was previously a closed-end fund that opened to Canadian investors on January 27, 2021, prior to converting to an ETF.

This is why BITC ETF is not deemed the first Bitcoin ETF, as it was converted into an ETF very recently.

Ninepoint is promoting BITC as an environmentally friendly and carbon-neutral way to invest in Bitcoin. It accomplishes this by deducting the cost of the carbon offset from the management fee it charges.

BITC is traded on the Toronto Stock Exchange under the tickers BITC and BITC.U. It can be purchased in either Canadian or US dollars.

3. Evolve Bitcoin ETF (EBIT)

EBIT is the ticker symbol
C$112.8 Million in Assets Under Management (AUM)
CAD & USD
Date of Listing: February 19, 2021
TFSA/RRSP Acceptable: Yes

Evolve Bitcoin ETF (EBIT) is a Bitcoin exchange-traded fund (ETF) that Canadians can purchase and retain in registered accounts such as their TFSA or RRSP, as well as non-registered investment accounts.

The management fee for EBIT ETF is 0.75%, which is somewhat less than the management fee for BTCC ETF.

Due to the ETF’s infancy, returns and performance data are not yet available.

­Evolve Bitcoin ETF was introduced just one day after Purpose Bitcoin ETF, although it has not had the same degree of triumph or progress as Purpose Bitcoin ETF.

EBIT is listed on the Toronto Stock Exchange (TSX) and is offered in both Canadian dollars (CAD) and United States dollars (USD) under the following ticker symbols:

  • CAD Unhedged: EBIT
  • US Dollars: EBIT.U

Montreal Exchange also offers options trading on the ETF.

4. CI Galaxy Bitcoin ETF (BTCX)

BTCX is the ticker symbol
0.40% in fees
C$354.8 Million in Assets Under Management (AUM)
CAD & USD
Date of Listing: March 5, 2021
TFSA/RRSP Acceptable: Yes

CI Investments introduced the CI Galaxy Bitcoin ETF (BTCX) in March 2021, collaborating with Galaxy Digital Capital Management LP, the ETF’s Portfolio Manager.

BTCX charges the lowest management fee of all bitcoin ETFs in Canada, at 0.40 percent.

Additionally, it has set a maximum MER of 0.95%, significantly lower than Purpose Investment’s 1.50% or 3iQ’s 1.25%.

Canadian residents may invest in and hold this ETF through a TFSA, an RRSP, or a non-registered investment account.

BTCX is traded on the Toronto Stock Exchange and is available in both CAD and USD:

  • CAD Unhedged: BTCX.B
  • US Dollars: BTCX.U

5. 3iQ CoinShares Bitcoin ETF (BTCQ)

BTCQ is the ticker symbol
Fees: 1%
1.19Billion in Assets Under Management (AUM)
CAD & USD
Date of Inception: March 31, 2021

3iQ CoinShares Bitcoin ETF (BTCQ) is a cryptocurrency exchange-traded fund (ETF) from 3iQ, Canada’s most prominent digital asset investment manager, and CoinShares, Europe’s largest digital asset investment manager.

BTCQ is traded on the Toronto Stock Exchange and is an open-ended bitcoin exchange-traded fund (ETF), which means it may issue an infinite number of shares to investors.

Investors can pick between the USD and CAD variants, denoted by the ticker symbols BTCQ.U and BTCQ.

As with the Purpose Bitcoin ETF, the 3iQ CoinShares Bitcoin ETF has grown significantly since it began trading on the Toronto Stock Exchange on April 19, 2021.

Indeed, it is the quickest bitcoin ETF to reach C$1 billion in AUM, having done so in just three weeks.

3iQ already has a first-of-its-kind publicly traded bitcoin investment fund prior to the debut of its Bitcoin ETF in April 2020.

It is listed on the Toronto Stock Exchange under the ticker symbols QBTC (CAD) and QBTC.U.

BTCQ differs from the more aged bitcoin fund in that QBTC is a closed-end fund.

BTCQ charges a 1.0% management fee and has a maximum MER of 1.25%.

The management expense ratio (MER) is the overall fee charged by a fund. It comprises the management fee, operational costs, and any additional expenditures incurred by the fund.

Benefits of Holding Bitcoin ETFs

The following are some of the advantages of holding a bitcoin ETF over purchasing bitcoin directly using a crypto trading app:

Flexibility & Profitability

If you wish to hold bitcoin in your TFSA, RRSP, or other registered accounts, the bitcoin ETFs enable you to do so.

By storing them in a tax-efficient account, you can retain a greater portion of your gains.

Convenience

Bitcoin ETFs make cryptocurrency investing simple and available to all investors. There is no need to download an app, safeguard your wallet’s private keys, or address any other risks associated with purchasing a digital currency directly. Notably, the idea of investing in ETFs is to take the management off your hands.

Security

The bitcoin ETFs are kept in cold storage, which decreases the possibility of hacking and theft.

Disadvantages of Holding Bitcoin ETFs

However, there are some disadvantages to holding bitcoin ETFs:

Increased Fees

The two biggest ETFs have a 1% management fee, and you may anticipate a greater fee after operating expenses are factored in.

You may eliminate some of these fees by investing directly in bitcoin using a low-fee crypto app with reduced spread.

Less Control

When you invest in an ETF, you’re basically paying the ETF provider to manage your money while it’s still in the company’s possession.

This means that the ETF’s management will determine how your funds are allocated.

You’ll possess less control over your bitcoin holdings because you won’t be able to store them in your own private wallet.

How To Buy Bitcoin ETFs in Canada

One of the primary advantages of investing in bitcoin via an ETF is the ability to purchase them through your preferred brokerage.

Bitcoin ETFs are available in Canada through the majority of Canadian brokerage platforms that support stock and ETF trading.

There is an additional trading cost, but it should be the same as trading any other ETF.

However, you can totally eliminate the additional commissions if you invest through a commission-free investment platform.

If you’re searching for no commission brokerages or investing apps, the following two are excellent choices for Canadian investors:

Wealthsimple Trade Best Value

Trading fees for ETF purchases and sales are zero
Trading via desktop and mobile devices
A Reputable Brand with a Stunning Design

Questrade Best Value

ETF purchases incur zero trading fees
Trading via desktop and mobile devices
Numerous account types available

Are Bitcoin ETFs Safe?

All bitcoin exchange-traded funds are regulated by the relevant Canadian authorities.

As a result, you may feel comfortable that your investments are being managed professionally.

Bitcoin ETF providers go to extraordinary lengths to safeguard the safety and security of your crypto holdings with investing organizations by storing them in cold storage, which adds another layer of security and reduces the likelihood of your Bitcoin being lost due to human mistakes or data breaches.

To keep the underlying bitcoins safe, every bitcoin ETF provider uses third-party custodians.

Gemini, a U.S.-based regulated crypto custodian, is used by several of them as the custodian or sub-custodian.

Additionally, keep in mind that bitcoin is speculative, extremely volatile, and frequently has large price swings.

The dangers are far greater than those associated with conventional stock investing.

As a result, it is wise to determine your risk tolerance and allocate only a small portion of your portfolio to it.

How to Buy Bitcoin in Canada using Crypto Exchanges & Mobile Apps

Bitcoin ETFs are becoming a hot topic in Canada. If you are looking for an alternative to Bitcoin ETFs in Canada, here is a list of 3 popular crypto exchanges and mobile apps available.

All three offer reliable services that allow Canadians the ability to place trades themselves or store their bitcoins on these platforms securely:

Crypto.com versatile

A reputable, leading low-fee exchange with over 60 coins available.

Fees: 0.036%-0.144%

Coinbase Secure & TRUSTED

A secure and trusted exchange that enables investors of all skill levels to buy, store, and sell cryptocurrencies.

Fees: 0.5%-4.5%

Wealthsimple Crypto Reputable

The first crypto asset platform in Canada to be registered with securities regulators.

Fees: A 1.5-2% Operations Fee per transaction

Ethereum ETFs are also a thing now

Bitcoin is the most popular cryptocurrency worldwide and has been a mainstay of finance since its inception. However, several other cryptocurrencies have gained significant traction over time – namely Ethereum for second place in terms of popularity with blockchain enthusiasts.

The cryptocurrency markets are becoming increasingly popular, and the demand for more accessible options is high.

Other cryptocurrency exchange-traded funds are also available in Canada. However, they are currently limited to Bitcoin or Ether.

All of the Bitcoin ETF providers listed above, apart from Ninepoint, also offer Ether ETFs or Ethereum ETFs.

You can learn more about the best Ethereum ETFs in Canada by reading that article.

Invest Like the Pros with Bitcoin ETFs

Purchasing Bitcoin has gotten significantly more accessible after the first Bitcoin exchange-traded fund (ETF) in Canada was established in February 2021.

You may invest in Bitcoin fast and affordably through these Bitcoin ETFs without encountering the difficulties and issues associated with cryptocurrency trading on a crypto exchange.

Additionally, Canadians can anticipate additional options in the near future.

Canadian Bitcoin ETFs are a simple way to invest in the world’s most popular cryptocurrency. So begin investing by choosing one of these five ETFs and start building your portfolio today!

Sunny Hoi

Sunny Hoi

Sunny is an experienced content strategist. He has a deep understanding of the retail and finance industries. Sunny has written extensively about products, services, stores, stocks, cryptocurrencies, and investment strategies. Sunny's writing reflects his deep understanding of his subjects and commitment to providing clear, concise information that helps readers make informed decisions.

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