In 2021, digital currencies like Bitcoin have broken through price records that were thought to be impossible a few years back.
An ETF (Exchange-Traded Fund) is a fund that tracks an underlying asset, such as a stock market index or a commodity. It's one of the most popular ways to invest in cryptocurrencies without having to worry about cold storage and public keys.
It's no surprise that Canada has been at the forefront of accepting these new funds in North America, as Canadians created the first-ever ETFs.
In this post, I'll go through some of the best Bitcoin ETFs in Canada, and how you can invest in them.
#1 Purpose Bitcoin ETF (BTCC)
The Purpose Bitcoin ETF is the first Bitcoin ETF both in Canada and around the world.
It has grown its asset under management (AUM) to $1.3 billion, surpassing the $1 billion barrier in less than a month since its debut on February 18, 2021. As a result, its Bitcoin Holding increased from 85 to over 19,000 as of April 30, 2021.
It is listed on the Toronto Stock Exchange (TSX) and comes in three different types with distinct ticker symbols:
- BTCC (CAD and currency-hedged)
- BTCC.B (CAD and non-currency hedged)
- BTCC.U (USD and non-currency hedged)
BTCC Fees And Returns
It's still too soon to tell how the ETF has performed and returned, but it will at least track the performance of Bitcoin net of the management expense ratio (MER). The returns of the two CAD ETFs will be subject to some currency volatility, but this is hedged for BTCC.B.
The MER or total cost of the ETF has not yet been determined while the management fee is 1%. However, with any savings passed on to ETF investors, the MER will be limited to 1.50%.
How To Invest In The Purpose Bitcoin ETF (BTCC)
Purpose Bitcoin ETF may be purchased on a variety of brokerage platforms, including Wealthsimple Trade and Questrade.
Wealthsimple Trade allows you to trade without paying a fee and offers a $50 bonus for funding your account and trading at least $100.
Trade commissions with Questrade vary from $4.95 to $9.95 per trade when you sell, and free ETF purchases are available. You may also earn $50 in free trades when you deposit at least $1,000.
#2 3iQ CoinShares Bitcoin ETF (BTCQ)
The 3iQ CoinShares Bitcoin ETF (BTCQ) is a Bitcoin ETF that was created by 3iQ, Canada's largest digital asset investment fund manager, and CoinShares, Europe's largest digital asset fund manager.
The 3iQ CoinShares Bitcoin ETF, like the Purpose Bitcoin ETF, has seen strong growth since it debuted on the TSX on April 19, 2021. In fact, it's the quickest Bitcoin ETF to reach CAD $1 billion in AUM, taking only 3 weeks to do so.
It's currently traded on the TSX under the following ticker symbols:
- QBTC (CAD)
- QBTC.U (USD)
BTCQ Fees And Returns
The fee structure of BTCQ is 1.0% for its management fee, and its MER is limited to 1.25%.
#3 CI Galaxy Bitcoin ETF (BTCX)
In March 2021, CI Investments and Galaxy Digital Capital Management LP launched the CI Galaxy Bitcoin ETF (BTCX).
BTCX is listed on the Toronto Stock Exchange (TSX) and offers both a CAD and USD version of the ETF, which are:
- BTCX.B (CAD and Unhedged)
- BTCX.U (U.S Dollars)
BTCX Fees And Returns
Its performance won't be accessible until it has completed one full year like the previously discussed ETFs.
However, BTCX has the lowest management fee of any of the Canadian Bitcoin ETFs, at just 0.40%. It also limited its MER to 0.95%, far lower than Purpose Investment's 1.50% or 3iQ's 1.25%.
How To Invest In The CI Galaxy Bitcoin ETF (BTCX)
BTCX is listed on the Toronto Stock Exchange (TSX) and is accessible through most major brokerage platforms, like Questrade, Wealthsimple Trade and Qtrade.
#4 Evolve Bitcoin ETF (EBIT)
The Evolve Bitcoin ETF (EBIT) was launched one day after the Purpose Bitcoin ETF (on February 19), but unfortunately, it has not experienced the same degree of success or popularity.
On the Toronto Stock Exchange (TSX), EBIT is traded under the symbol EBIT and is accessible in both CAD and USD using the following ticker symbols:
- EBIT (CAD Unhedged)
- EBIT.U (U.S Dollars)
Options Trading for the ETF is also available through the Montreal Exchange.
EBIT Fees And Returns
Because the ETF is relatively new, no returns or performance data are presently available.
EBIT invests solely in Bitcoin and charges a reduced management fee of 0.75%.
How To Invest In The Evolve Bitcoin ETF (EBIT)
EBIT can be purchased using a self-directed brokerage account.
Brokerage platforms offering the ETF in Canada include Wealthsimple Trade, which offers free ETF and stock purchases, and Questrade, which offers free EBIT purchases.
#5 Ninepoint Bitcoin ETF (BITC)
The Ninepoint Bitcoin ETF (BITC) is a closed-end fund that has been transformed into an ETF. The fund was established on January 27, 2021.
The Ninepoint Bitcoin ETF (BITC) is being sold as an environmentally friendly and carbon-neutral way to invest in Bitcoin, and it pays for the carbon offset through the management fee it charges to do it.
BITC is listed on TSX and can be traded either in CAD or USD through these ticker symbols:
- BITC (CAD)
- BITC.U (USD)
However, it's worth mentioning that this is another Bitcoin ETF that has a high-risk investment rating, so tread carefully if you're planning to spend money on it.
How To Invest In The Ninepoint Bitcoin ETF (BITC)
BITC offers a simple and secure method to store Bitcoin in your investment account with any of the Canadian brokerages.
You may save money by investing in the ETF through a brokerage that allows for commission-free ETF purchases, which is something that Wealthsimple Trade and Questrade allow you to do.
Bitcoin is set to become more mainstream in the coming years, and if you're looking for a way to invest without having to worry about cold wallets or public keys, an ETF might be your best option.
There are plenty of great ETFs that can help you get started investing in Bitcoin despite the risk involved, so don't wait too long before diving into this exciting new frontier of investing!