Are you looking for ways to add Bitcoin to your investment portfolio without worrying about cold wallets and public keys? Investing in one of the best Bitcoin ETFs in Canada is a great work around. With these financial instruments, you can invest in Bitcoin without actually buying the cryptocurrency.

Bitcoin ETFs are a new type of financial product that was introduced in Canada in the year 2021. Canada remains at the forefront of releasing the first-ever Bitcoin ETF in North America, as a way to invest in the largest cryptocurrency without using a crypto exchange. These crypto investment products provide investors with everything they need to know about Bitcoin while maintaining a certain degree of transparency and liquidity. Let’s take a look at some of the best Bitcoin ETFs in Canada and their various features below!

What is a Bitcoin ETF?

A Bitcoin ETF is an exchange-traded fund that tracks the value of Bitcoin on any market exchange platform. Sometimes Bitcoin ETFs invest in cryptocurrencies as well, but it’s more common for them to track the performance of digital assets. They help investors buy into Bitcoin without going through the difficulty of accessing a cryptocurrency exchange. If you don’t want the hassle of buying Bitcoin directly, Bitcoin ETFs are an alternative.

Today, these exchange-traded funds are available for several assets, including Ethereum, other cryptocurrencies, and commodities of all kinds. If Bitcoin increases in value, the ETF will move the same way and vice versa. The difference is that instead of trading on a cryptocurrency exchange, the ETF would trade on market exchanges like the New York Stock Exchange (NYSE) or Toronto Stock Exchange (TSX).

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Is it better to buy Bitcoin or an ETF?

As soon as Bitcoin ETFs are available for investors to trade, you will have to decide whether you want to buy Bitcoin directly or invest in the best Bitcoin ETF in Canada. The truth is Bitcoin ETFs could make Bitcoin investment accessible to a lot more people, but what’s the guarantee that buying Bitcoin directly isn’t better?

To help you choose the right investment option for your portfolio, there are a few details to consider. Here is why buying Bitcoin is a good option:

• Great for savvy investors: Ultimately, Bitcoin and cryptocurrency isn’t for everyone. However, savvy investors may be interested in investing in this cutting edge, new technology.
• Ready to spend with Bitcoin: If you are interested in using Bitcoin as currency to make purchases, you need to buy the cryptocurrency directly. Investing in a Bitcoin ETF will not give you access to the asset directly, thereby allowing you not to see the value in a Bitcoin ETF.
• Prefer to transfer funds internationally: Bitcoin exchange rates may be more favorable compared to exchange rates for local currencies. To use Bitcoin to transfer money to persons in other countries, you will need to purchase it directly. This will not be possible with an ETF for another person to spend.

On the other hand, here is why investing in a Bitcoin ETF might be a better option:

• Cautious of Bitcoin: An ETF bypasses some risk of buying and holding Bitcoin directly. There are still a lot of risks associated with cryptocurrency, but an ETF is a work around.
• Ideal for the hands-off investor: For investors interested in diversifying their investment portfolio with a high-risk and high-reward asset, a Bitcoin ETF is a better option than buying Bitcoin.

Does Canada have a crypto ETF?

Yes. Canada offers various crypto ETFs for investors who are interested. Below, we will discuss some of the best Bitcoin ETF options in Canada. However, the top ones include Evolve Ether ETF, CI Galaxy Bitcoin ETF, Purpose Bitcoin, and 3iQ CoinShares Bitcoin ETF. Keep reading to learn more!

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5 Best Bitcoin ETFs in Canada

If you’re ready to invest in one or more of the best Bitcoin ETFs in Canada, check out our list of the top 5 below:

1. Evolve Bitcoin ETF (EBIT)

Key facts about EBIT:

• Inception date: February 19, 2021
• Management fee: 0.75%
• Assets under management: $162 million
• Eligible accounts: TFSA, RRPS, personal and business taxable accounts
• Cold storage wallet: 100%
• Listing currency: CAD & USD
• Price Index: CME CF Bitcoin Reference Rate (BRR)

Evolve’s Bitcoin ETF is a major option for investors to consider for Bitcoin exposure. EBIT is simply designed to track the price movement of Bitcoin with no other additional features or strategies.

Evolve ETF offers a US version account that allows investors to use US dollars on the side of their accounts. EBIT has a relatively small asset and comes with the highest management expense fee on this list of Bitcoin ETFs.

2. CI Galaxy Bitcoin ETF (BTCX)

Key details for this ETF are:

• Inception date: March 5, 2021
• Management fee: 0.40%
• Assets under management: $536 million
• Eligible accounts: RRSP, RRIF, TFSA, RESP, RDSP, DPSP, including personal and corporate non-registered accounts
• Cold wallet storage: 100%
• Listing currency: CAD & USD

CI Galaxy Bitcoin ETF aims at tracking the price movement of Bitcoin but does not offer investors any additional features. In terms of assets, this fund is quite large and is the lowest-cost Bitcoin ETF option for investors in Canada of this list. 

The fund features a US dollar version which makes it possible to buy on the US side of your accounts, in addition to Canada. As the lowest-fee Bitcoin ETF in Canada, BTCX is a top choice for Bitcoin investors looking to gain more exposure through a fund.

3. Purpose Bitcoin ETF (BTCC)

Some key details about the Purpose of Bitcoin ETF include:

• Inception date: February 18, 2021
• Management fee: 1.00%
• Assets under management: $2.2 billion
• Cold storage wallet: 100%
• Eligible accounts: TFSA, RRSP, personal and corporate non-registered investment accounts
• Listing currency: CAD & USD

Purpose Bitcoin ETF usually offers the most options and remains a company fund that tracks the price of Bitcoin. Furthermore, Purpose Bitcoin ETF is quite robust because it comes in several formats such as:

• US Dollar
• Hedged Canadian Dollar
• Unhedged Canadian Dollar
• Carbon Offset (the carbon offset format simply allows investors to offset 100% of the carbon emission from their investments)

When it comes to assets, BTCC is a large Bitcoin ETF here in Canada and its fees are much higher than other ETFs on the list. Purpose offers a robust Bitcoin ETF here in Canada that any investor with an ESG mindset will want to consider.

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4. 3iQ CoinShares Bitcoin ETF (BTCQ)

Key details for BTCQ include:

• Inception date: March 31, 2021
• Management fee: 1.00% (MER up to 1.33%)
• Assets under management: $184 million
• Cold storage wallet: 100%
• Eligible accounts: RRSP, RRIF, RDSP, DPSP, RESP, TFSA, including personal and corporate non-registered investment accounts
• Listing currency: CAD & USD

The 3iQ CoinShares Bitcoin ETF is well-known as one of the largest digital asset money managers in Canada. They are more expensive in terms of total fees than other Bitcoin ETF options. However, just like every other Bitcoin ETF on the list, BTCQ is a type of fund that can track the price movement of Bitcoin.

3iQ also serves as a Bitcoin ETF for investors interested in adding Bitcoin exposure to their US accounts. Although you can get them at a much higher fee than other ETFs, BTCQ is usually difficult to recommend as a top Bitcoin ETF because of its additional expenses.

5. Fidelity Advantage Bitcoin ETF (FBTC)

Key details for FBTC include:

• Inception Date: November 30, 2021
• Management Fee: 0.00%
• Assets under Management: $278 million
• Cold Storage Wallet: 100%

Fidelity Advantage Bitcoin ETF is one of the Bitcoin ETFs in Canada designed to track the price of Bitcoin, without any fees. The ETF is quite small in terms of management, but this is because it was released later than other ETFs in Canada. 

Fidelity offers a US dollar version of its Bitcoin ETF, which makes it easy for people from Canada to add it to their US dollar portfolios. Moreover, when it comes to one of the inexpensive options in the Canadian Bitcoin ETF space, FBTC ETF is one to consider. 

Related Reading: Best Cryptocurrency ETFs in Canada

What is the best Bitcoin ETF in Canada?

The five Bitcoin ETFs mentioned above are designed to invest and track cryptocurrencies and other digital assets. Not to mention, there are no obvious differences in each investment strategy involved. However, according to the management fees and associated costs, the best Bitcoin ETF in Canada will be CI Galaxy Bitcoin ETF with a fee of 0.40%. Fidelity Advantage Bitcoin ETF is a good option too with a 0% management fee, but it’s quite volatile considering how new it is.

What Canadian ETF tracks Bitcoin?

Now that you have a list of some of the best Bitcoin ETFs in Canada, those capable of tracking Bitcoin include: Evolve Bitcoin ETF, 3iQ CoinShares Bitcoin ETF, CI Galaxy Bitcoin ETF, Purpose Bitcoin ETF, and Fidelity Advantage Bitcoin ETF.

Adding Bitcoin ETFs to your Portfolio

Bitcoin and other cryptocurrencies are still a high risk investment. Due to lack of regulation and high fraud rates in the market, there is a greater risk to your portfolio. However, Bitcoin ETFs and other crypto backed ETFs may offer less risk compared to cryptocurrency itself. At the end of the day, it depends on your risk tolerance and goals as an investor. Check in with those values before investing in Bitcoin or Bitcoin ETFs. Good luck with your investing journey!

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