This is a list of spot Bitcoin ETFs in Canada. Spot Bitcoin ETFs offer investors direct exposure to Bitcoin's price through a traditional securities exchange, meaning that they are TFSA and RRSP eligible. Spot ETFs are directly backed by Bitcoin, meaning that when an investor buys shares, the fund holds Bitcoin on their behalf, typically in cold storage.
Fidelity Advantage Bitcoin ETF
CI Galaxy Bitcoin ETF
3iQ Coinshares Bitcoin ETF
Ninepoint Bitcoin ETF
Purpose Bitcoin ETF
Evolve Bitcoin ETF
1. Fidelity Advantage Bitcoin ETF
With 70+ years of experience and 40 million clients, Fidelity Investments is one of the world's biggest financial service companies. On Nov 30, 2021, they launched their Canadian spot Bitcoin ETF, and on Oct 24, 2022, they held 1,111 bitcoin or about $29.5M in net assets. 98% of the Bitcoin is held in cold storage, according to the website. Its total fee, or Management Expense Ratio (MER), is 0.95%, which is the second-lowest on this list.
2. CI Galaxy Bitcoin ETF
Established in 1965, CI Financial is a global wealth management and advisory service. They have over $300B in assets under management (AUM), making them one of the biggest fund managers in Canada. In March of 2021, they launched their Bitcoin spot ETF which offers investors direct exposure to Bitcoin's price and the potential for long-term capital growth. This ETF has about $227M in net assets. Its MER is 0.85%, making it the most affordable choice on this list.
3. 3IQ Coinshares Bitcoin ETF
3iQ is an investment fund devoted to digital assets that offers Bitcoin ETFs, Ether ETFs, and more. They were founded in 2012 and introduced their 3IQ Coinshares Bitcoin ETF on March 30, 2021. The fund gives investors "exposure to the daily price movements of the US dollar price of Bitcoin" and has partnered with Coinbase Prime as both its broker and custodian. As of Oct 30, 2022, this Bitcoin ETF has $309M in net assets value. Its management expense ratio stands at 1.29%.
4. Ninepoint Bitcoin ETF
Ninepoint is the smallest ETF on this list. They provide a "carbon neutral Bitcoin ETF" through the process of donating a portion of its management fees to offset the carbon produced by Bitcoin. For a management fee of 0.70% and an overall MER of 1.45%, investors can gain exposure to Bitcoin while reducing the environmental impact.
5. Purpose Bitcoin ETF
Purpose Investments is a Canadian asset management firm with over $14 billion in assets. In October 2021, Purpose launched the world's first Bitcoin ETF that provided direct exposure to Bitcoin on a major stock exchange. As of 10/28/2022, the fund holds over 23,460 Bitcoins worth $659 million with a MER capped at 1.50%. This ETF is available in three varieties: FX hedged (BTCC), non-fx hedged (BTCC.B), and a carbon offset non-fx hedged (BTCC.J).
6. Evolve Bitcoin ETF
The Evolve Bitcoin ETF launched on Feb 17, 2021. It provides investors exposure to the daily price movements of the U.S. dollar price of Bitcoin. It has grown to $64 million in assets under management as of 10/28/2022. 100% of its assets are held in cold storage.
What Is A Spot Bitcoin ETF?
A spot Bitcoin ETF offers investors direct exposure to Bitcoin's price through a traditional securities exchange. Spot ETFs are directly backed by Bitcoin, meaning that when an investor buys shares, the fund stores Bitcoin on their behalf, usually in secured cold storage.
What Is The Best Bitcoin ETF?
The largest Canadian Bitcoin ETF is the Purpose Bitcoin ETF (BTCC) which holds 23,460 Bitcoins valued at $659 million (Oct 28, 2022). It is has an MER, or overall fee of 1.50%. The fund with the lowest MER is the CI Galaxy Bitcoin ETF (BTCX) at 0.85%. Its net assets are $227 million.
Are They Worth It?
Bitcoin ETFs have pros and cons. The best advantage is you can hold it in a tax-advantaged account like your TFSA or RRSP (you can't do this by owning BTC directly). It's also easier since you don't need to worry about crypto exchanges, wallets, and self-custody.
The downsides are high management fees, third-party risk, and lack of ownership. A company owns the Bitcoin on your behalf, which defeats the purpose of decentralized money. It also means you can't participate in Bitcoin DeFi, lending, or Dapps because the Bitcoin is not in your possession.
How Do You Buy Bitcoin ETFs?
Is US Dollar Hedged or Unhedged Better?
There is no right or wrong answer - it depends on the investor's preference. ETFs that are hedged attempt to reduce the impact of CAD-USD currency fluctuations on the fund's performance. Hedged ETFs are generally considered safer but can have added costs and more tracking errors. Here's a good breakdown of hedged vs unhedged ETFs for Canadians.