Digital currencies like Bitcoin have broken through price records that were thought to be impossible a few years back, and Bitcoin ETFs are one of the most popular ways to invest in cryptocurrencies without having to worry about cold storage and public keys. In this post, I'll go through some of the best Bitcoin ETFs in Canada, and how you can invest in them.
It's worth pointing out that crypto ETFs have some noticeable drawbacks to them, however, and most Canadians will find it easier to buy Bitcoin through a reputable crypto exchange like VirgoCX or Bitbuy. For this purpose, we recommend that you use CoinSmart, mainly because of its security, ease of use, and the fact that it has some of the lowest trading fees across crypto exchanges in Canada.
What Is The Best Bitcoin ETF In Canada?
#1 Purpose Bitcoin ETF (BTCC)
The Purpose Bitcoin ETF (BTCC) made history as the first Bitcoin ETF launched anywhere in the world. It shook the financial industry when it launched, and has continued to make waves as an industry-leading crypto ETF.
Since its inception, BTCC has grown assets under management (AUM) to $1.3 billion, surpassing the $1 billion barrier less than a month since its February 2021 debut. It grew from holding 85 Bitcoin to more than 19,000 Bitcoin in its first two months and has continued to grow from there.
BTCC is listed on the Toronto Stock Exchange (TSX) across three distinct ticker symbols. Each of the tickers represents a different variation on the main ETF:
- BTCC (CAD, currency-hedged)
- BTCC.B (CAD, non-currency hedged)
- BTCC.U (USD, non-currency hedged)
- Management Expense Ratio (MER): 1.50%
Crypto investors looking for long-term exposure to Bitcoin from a trusted Canadian brand.
#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)
- Management Expense Ratio (MER): 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)
- Management Expense Ratio (MER): 0.95%
#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.
- Management Expense Ratio (MER): 0.75%
#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.
The Best Way To Buy Bitcoin ETFs
You can't invest in Bitcoin ETFs through a crypto exchange. All of these ETFs can be purchased from a handful of Canadian online brokers, though some brokers are better for ETF investing than others.
If you're looking for a broker that offers free ETF trading in a secure environment, we recommend Wealthsimple Trade, a commission-free broker currently offering a $50 signup bonus if you fund your account and deposit at least $100. Questrade also offers fee-free ETF trading and is currently offering a $50 signup bonus when you deposit at least $1,000.
Top Crypto Exchanges In Canada To Invest In Bitcoin Directly
Even though investing in crypto ETFs is often much easier than investing in cryptocurrencies directly, there are a few cons worth keeping in mind. For instance, when investing in a crypto ETF, you won't have any control over the underlying cryptocurrencies, which means that you won't be able to use them to pay for services or be able to sell them.
Also, crypto ETFs are limited to the two most popular cryptocurrencies around today (Bitcoin and Ethereum), which means that you won't be able to do much if you're interested in other altcoins and want to invest in them.
Because of these disadvantages, most Canadians will find it easier to buy Bitcoin directly through a crypto exchange like Bitbuy or Coinsmart instead of buying it through an ETF. This will reduce the fees you'll need to pay by a considerable margin, and it also gives you more control over your crypto assets.
However, you should be careful what exchange you choose, since they can be quite different from one another. For example, Shakepay and Newton offer commission-free trading, but very high spreads, making investing with these platforms expensive overall. On the other hand, Wealthsimple Crypto is very user-friendly, but it's also expensive and has horrible customer support.
So, to help you choose wisely, here are our picks for the top three crypto exchanges in Canada:
1. CoinSmart – $50 Signup Bonus
Best In Canada
Trading fees: 0.2% (Medium)
CoinSmart supports 16 cryptocurrencies, verifies accounts instantly, prides itself on its helpful customer service reps, and has a beautiful, well-rated app.
CoinSmart has been designated a Registered Marketplace by the Ontario Securities Commission (OSC), is registered as a Money Services Business with FINTRAC, and is a member of the anti-money laundering group TRUST, all of which means they're a highly secure exchange.
CoinSmart maintains a 95% cold storage policy, and as a publicly-traded company, its financials are audited by a third-party firm at least once per year.
If you're looking for a great all-around crypto trading platform, CoinSmart is an excellent choice.
- Very low spreads on trades
- 24/7 customer support available via live chat and email
- Instant account verification
- Supports 16 cryptocurrencies
- Registered Marketplace by the OSC
- Immediate deposits and withdrawals
- User-friendly for both beginners and advanced traders
- 95% cold storage policy keeps your crypto extra secure
- Account Opening: Free
- Trading Fees: 0.2%
- INTERAC Deposit: 1.5%
- Bank Wire Deposit: 0%
- Bank Wire Withdrawal: 1%
- EFT Withdrawal: 1%
$50 bonus when you sign up using this link and our promo code YOREOYSTER.
Investors looking to trade with low trading fees.
2. VirgoCX – $20 Signup Bonus
#2 In Canada
Trading Fees: 0%
VirgoCX offers 50+ cryptocurrencies, charges zero trading fees, and only charges spread between 0.5% – 0.95%, making it a cost-effective exchange.
VirgoCX’s trading platform and mobile app are intuitive and easy to use, even for beginners. It offers 24/7 customer support via live chat and email, plus an extensive FAQ section on its site.
VirgoCX charges no deposit or withdrawal fees on fiat and covers the first $6 in mining fees on ERC20 withdrawals. It requires 2-factor authentication on all accounts and maintains a 95% cold storage policy to keep your assets safe at all times.
As a new VirgoCX user, you'll receive a $20 bonus upon funding your account, which you can use to buy Bitcoin, Ethereum, or any of the dozens of assets VirgoCX supports.
If maximizing your investment potential is important to you, VirgoCX is a great choice.
- Lowest fees in all of Canada
- Supports 50+ cryptocurrencies
- Free fiat deposits and withdrawals
- Free deposits and withdrawals on most cryptocurrencies
- 24/7 support available via live chat and email
- User-friendly for both beginners and more advanced traders
- 95% cold storage policy keeps your crypto extra secure
- Account Opening: Free
- Cash Deposits: Free
- Cash Withdrawals: Free
- Crypto Deposits: Free
- Crypto Withdrawals: Free for all major coins
- Spreads on trades: 0.5% – 0.95%
$20 when you fund your account with $100 or more using this link.
Investors looking for the lowest fees in Canada.
3. ZenGo – Most Secure
Account Opening: Free
ZenGo is free to use, which means you get the industry's best security for no cost. Sending and receiving crypto to and from ZenGo is also free, and their 24/7 support team answers most queries in 5 minutes or less.
ZenGo’s proprietary keyless technology means that your crypto is protected by two independently created mathematical secret shares: one that lives on your phone, and another that lives in the cloud. This unique setup means that your coins are always 100% secure, and that you’ll never have any trouble accessing them, even if your phone is lost, stolen, or broken, or if ZenGo (the company) were to go bankrupt, commit fraud, or cease operations for any other reason.
ZenGo supports more than 75 crypto assets, and it takes less than 30 seconds to open your free account.
Overall, ZenGo represents the next generation of crypto: with top-level security inside an easy to use app, ZenGo offers the best of both worlds.
- Supports 75+ crypto assets
- 24/7 customer support
- Extremely well-rated mobile app (4.7/5 on the App Store)
- Face scanning technology for even greater security
- Up to 8% APY in crypto savings
- Cancel or speed up your sent transactions with one tap
- Choose from the 3 network fees modes: economy, regular, and fast (applicable for BTC, ETH, and ERC20)
- Account Opening: Free
Crypto investors looking for the most secure trading experience + low fees.
SECURE MY CRYPTO FOR FREESign up by June 7, 2023.
How Well Do Bitcoin ETFs Perform?
The only reasonable thing to say about how well Bitcoin ETFs perform is that it's too early to tell. Since not a single crypto ETF is even 12 months old yet, making decisions based on their past performance would be short-sighted.
As a result, you should exercise caution when considering investing even a small amount of your money into a Bitcoin ETF. With that said, the double-digit annual gains of cryptocurrencies more broadly suggest that crypto ETFs may develop into strong investment vehicles in the future.
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.
However, crypto ETFs in general have some noticeable drawbacks, and most Canadians will find it easier to buy Bitcoin through a reputable crypto exchange. For this purpose, we recommend that you use CoinSmart, mainly because of its security, ease of use, and the fact that it has some of the lowest trading fees across crypto exchanges in Canada.