Best Crypto ETFs in Canada 2022: Here’s How to Invest

Cryptocurrency investing has been a hot topic in the past few years, with the introduction of Bitcoin ETFs and Ether ETFs.

Cryptocurrency has revolutionized the way people worldwide invest in assets and send money.

However, prior to 2021, investors had a lot more work on their hands when it came down to getting started with cryptocurrencies like Bitcoin or Ethereum because they needed to register with a crypto exchange, purchase the coins, and keep the coins safely stored away from hackers who could try to steal them at any moment.

All of this changed in 2021 with the emergence of numerous Canadian cryptocurrency exchange-traded funds (ETF).

Canadian investors have access to a variety of cryptocurrency ETF options, with some offering unique benefits. We’ll cover what they are, how you can invest in them, and elaborate on some alternatives that might better suit your needs!

The Best Crypto ETFs in Canada

Bitcoin has been gaining a lot of momentum in the past few years. It is not only one of the most popular cryptocurrencies but also boasts an impressive market capitalization – currently at over US$1 trillion!

Canada is a promising country for crypto investors, as there are many crypto ETFs available to invest in:

1. Purpose Bitcoin ETF (BTCC)

BTCC is the ticker symbol
Fees: 1%
$871 Million in Assets Under Management (AUM)
CAD & USD
Date of Inception: February 18, 2021
TFSA/RRSP Acceptable: Yes

Purpose Bitcoin ETF (BTCC) is Canada’s and the world’s first cryptocurrency exchange-traded fund.

The ETF received widespread support following its launch and quickly surpassed the $1 billion AUM threshold within a month of its debut.

It is listed on the Toronto Stock Exchange (TSX) under the ticker symbols listed below:

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

2. CI Galaxy Bitcoin ETF (BTCX)

BTCX is the ticker symbol
0.40% in fees
Assets Under Management (AUM): $214 million Canadian dollars
CAD & USD
Date of Listing: March 5, 2021
TFSA/RRSP Acceptable: Yes

CI Galaxy Bitcoin ETF (BTCX) is now the lowest-cost cryptocurrency ETF.

It has the lowest management costs among its peers, at 0.40%, while providing the same benefits.

CI Galaxy Bitcoin ETF (BTCX) offers the lowest management fee of any cryptocurrency exchange-traded fund (ETF) in Canada.

CI Investments established BTCX in collaboration with Galaxy Digital Capital Management LP, the ETF’s portfolio manager.

On the TSX, two types are traded: CAD Unhedged (BTCX.B) and US Dollars (BTCX.U).

3. Ninepoint Bitcoin ETF (BITC)

BITC is the ticker symbol
Management Fees: 0.70%
USD64 Million in Assets Under Management (AUM)
CAD & USD
Date of Listing: May 6, 2021
TFSA/RRSP Acceptable: Yes

The Ninepoint Bitcoin ETF (BITC) began trading in January 2021 as a closed-end fund but was subsequently converted to an exchange-traded fund in May 2021.

BITC is marketed as a green and carbon-neutral approach to investing in bitcoin.

Ninepoint accomplishes this by deducting the carbon offset costs associated with its bitcoin holdings from the management fee it charges.

The ETF is traded on the Toronto Stock Exchange under the tickers BITC and BITC.U.

4. 3iQ CoinShares Bitcoin ETF (BTCQ)

BTCQ is the ticker symbol
Fees: 1%
$781 Million in Assets Under Management (AUM)
CAD & USD
Date of Inception: March 31, 2021
TFSA/RRSP Acceptable: Yes

3iQ is the most prominent digital asset investment fund manager in Canada, while CoinShares is the largest in Europe. BTCQ is the outcome of their collaboration.

As was the case with the Purpose Bitcoin ETF, the 3iQ CoinShares Bitcoin ETF (BTCQ) is also a member of the C$1 billion AUM club. However, it accomplished this in a shorter period of time — just three weeks!

Investors can purchase the ETF in either USD or CAD currency. The USD ETF is traded on the Toronto Stock Exchange under the ticker BTCQ.U, whereas the CAD counterpart is traded under the ticker BTCQ.

The fund charges a management fee of 1.0% and has a maximum MER of 1.25%. Moreover, the fund is available for purchase in both registered and non-registered accounts.

5. Evolve Bitcoin ETF (EBIT)

EBIT is the ticker symbol
Management Fees: 0.75%
Assets Under Management (AUM): $66.9 Million Canadian Dollars
CAD & USD
Date of Listing: February 19, 2021
TFSA/RRSP Acceptable: Yes

Evolve Bitcoin ETF (EBIT) is another Bitcoin exchange-traded fund (ETF) that debuted in Canada and is accessible for both registered and non-registered accounts.

Evolve Bitcoin ETF was introduced nearly a week after Purpose Bitcoin ETF (BTCC). EBIT is the world’s second cryptocurrency exchange-traded fund.

EBIT is traded on the Toronto Stock Exchange (TSX) and offers options trading through the Montreal Exchange.

Additionally, it is available in CAD and USD, denoted by the ticker symbols EBIT (for CAD Unhedged) and EBIT.U (for US Dollars unhedged).

Best Ether ETFs in Canada

There are presently four Ether exchange-traded funds (ETFs) available in Canada, all provided by the same investment businesses that offer Bitcoin ETFs.

The following is a summary of the Canadian cryptocurrency exchange-traded funds (ETFs) that invest in Ether that is publicly listed in Canada:

1. Evolve Ether ETF (ETHR)

ETHR is the ticker symbol
Management Fees: 0.75%
Assets Under Management (AUM): $36.5 million Canadian dollars
CAD & USD
Date of Listing: April 20, 2021
TFSA/RRSP Acceptable: Yes

Evolve Ether ETF (ETHR) claims to be the world’s first ether exchange-traded fund.

Evolve Ether ETF (ETHR) is traded on the Toronto Stock Exchange (TSX) in CAD and USD.

ETHR (CAD Unhedged) and ETHR.U (US Dollars Unhedged) are the ticker symbols for the ETF.

Additionally, you can trade the fund utilizing the Montreal Exchange’s market.

Purchases may be made in both registered and non-registered investment accounts.

2. CI Galaxy Ethereum ETF (ETHX)

ETHX is the ticker symbol
Management Fees: 0.40%
Assets Under Management (AUM): $326 million Canadian dollars
CAD & USD
Date of Listing: April 16, 2021
TFSA/RRSP Acceptable: Yes

Similar to its Bitcoin ETF, CI Galaxy Ethereum ETF (ETHX.B) has the lowest management fee of any Ether ETF on this list.

It charges only 0.40% in management fees annually, and its MER is not expected to exceed 0.95%.

ETHX is traded on the Toronto Stock Exchange under two ticker symbols: ETHX.B for the unhedged Canadian dollar ETF and ETHX.U for the US dollar ETF.

The fund may be purchased through a registered or non-registered trading account, such as a TFSA or RRSP.

3. Purpose Ether ETF (ETHH)

ETHH is the ticker symbol
Fees: 1%
Assets Under Management (AUM): $141 million Canadian dollars
CAD & USD
Date of Inception: April 19, 2021
TFSA/RRSP Acceptable: Yes

The Purpose Ether ETF (ETHH) crossed the C$100 million mark in assets under management in around two weeks due to fresh investor adoption and a significant spike in the value of Ether.

The following three ticker symbols are used for trading ETHH on the Toronto Stock Exchange (TSX):

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

A significant disadvantage of the ETF is its substantially higher management charge of 1.0 percent, as opposed to the CI Galaxy Ethereum ETF’s 0.40% (ETHX).

However, this is the only Ether ETF that provides a CAD hedged version.

4. 3iQ CoinShares Ether ETF (ETHQ)

ETHQ is the ticker symbol
Fees: 1%
C$191 million in assets under management
CAD & USD
Date of Inception: April 19, 2021
TFSA/RRSP Acceptable: Yes

Lastly, there is the 3iQ CoinShares Ether ETF (ETHQ), which charges a 1.0% management fee.

ETHQ can be purchased in both registered and unregistered accounts.

This means you can purchase it and hold it in a TFSA or RRSP to benefit from tax-free returns.

ETHQ is traded on the Toronto Stock Exchange in both CAD and USD.

How to Invest in Crypto ETFs in Canada

There are a couple of ways to buy crypto ETFs in Canada. Here’s how you can go about it:

  • Choose the cryptocurrency exchange-traded fund (ETF) that you intend to purchase.
  • Log into your brokerage account or open one if you don’t already have one.
  • Choose an account to use – whether it is registered or unregistered – and fund it if it is not already funded
  • Execute the trade in the same manner as you would with any other ETF.

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

Congratulations! You’ve taken the first step toward becoming a crypto ETF investor. Cryptocurrencies have many benefits and come with risks if you don’t know what you’re investing in or how much money you can lose without losing everything – understand this before going further into crypto investments.

Therefore, you’ve just learned about cryptocurrencies and the risks they entail. Crypto ETFs track highly speculative assets, making them volatile in price swings, but they can also provide generous returns if done right, so don’t overinvest or go broke from trying to find a good deal.

Therefore, understand your risk appetite before investing any funds beyond what you can afford if things go wrong with an investment plan, of course (and don’t forget: keep it simple).

Benefits Of Buying CAD Crypto ETFs

Cryptocurrencies are a hot commodity these days, but it can be tough to know what you need for your investments. The tricky thing is that there are so many cryptocurrencies out on the market with different features and capabilities – some might give better returns than others!

Cryptocurrencies can be an exciting and profitable investment opportunity, but only if you know what it takes to invest. Many things could go wrong with your investments- from exchange hacks or insider trading scandals all the way down to software glitches on a personal wallet level!

The ease with which cryptocurrency ETFs can be purchased through an existing brokerage account may be the most significant feature of these new ETFs.

Moreover, you can purchase and retain them in registered accounts such as a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP). In addition, you may benefit from tax-free profits on your assets.

Anyone with a brokerage account can begin investing in the asset class with a small amount of money in their investment accounts.

However, keep in mind that just the two most popular cryptocurrencies, Bitcoin and Ethereum, are currently available as ETFs.

If these crypto ETFs succeed, you may be able to invest in ETFs for additional cryptocurrencies in the future.

It is feasible that a cryptocurrency exchange-traded fund (ETF) tracking multiple cryptocurrencies will be launched at some point.

Thus, investors can purchase a single ETF to obtain access to a portfolio of cryptocurrencies rather than buying many ETFs.

Alternatives to Crypto Exchange-Traded Funds

Cryptocurrencies are an exciting new frontier for investors and traders alike. Canadians who want to invest in cryptocurrency directly can find several exchanges that serve them.

One of the best ways to invest in cryptocurrency is through a trading platform. This will allow you access to purchasing coins and enable traders who want more control over their investments.

Crypto.com Best for canadians

The one-stop shop for everything crypto.

Coinbase Best for canadians

The most reputable place for buying, storing, and selling crypto.

By purchasing your cryptocurrencies directly, you may escape the management fees and MER associated with crypto ETFs.

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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