Cryptocurrency Exchange-Traded Funds (ETFs) are changing the investment landscape by making it easier for everyone to add cryptocurrency to their portfolio.
Investing in cryptocurrency used to mean getting on a crypto exchange like CoinSmart or NDAX and buying crypto such as Bitcoin, Ethereum, Litecoin, or Solana directly.
This approach is a bit challenging and involves more risks.
With Bitcoin ETFs or Ether ETFs, an investment firm invests in cryptocurrency on your behalf, and they are responsible for keeping it safe from hackers.
These firms are also subject to regulatory oversight, and your investments may enjoy insurance protection from insolvency.
The first Bitcoin and Ethereum ETFs were launched in Canada. While the U.S. regulatory authorities are yet to approve a crypto ETF, there are some crypto investment funds and blockchain ETFs you can access in the U.S.
Europe also has crypto ETFs and Exchange Traded Notes (ETNs).
Read on to learn about the best crypto ETFs you can buy in Canada.
Best Bitcoin ETFs in Canada
There are four Bitcoin ETFs in Canada. They are listed on the Toronto Stock Exchange (TSX) and can be purchased in Canadian or U.S. dollars.
A bitcoin fund may work for you if you want exposure to the underlying crypto asset and are willing to take high risks with your investments.
Purpose Bitcoin ETF (BTCC)
Purpose Bitcoin ETF (BTCC) was the world’s first bitcoin ETF. It is offered by Purpose Investments and is eligible for registered and non-registered investment accounts.
Fund details for BTCC as of February 11, 2022, are:
- Inception date: February 11, 2021
- Management fee: 1%
- Management Expense Ratio (MER): Up to 1.50%
- Assets under management: $1.6 billion
- Ticker: BTCC, BTCC.B, BTCC.U
The fund only invests in Bitcoin, and they are held in cold storage.
CI Galaxy Bitcoin ETF (BTCX.B)
CI Galaxy Bitcoin ETF is offered by one of Canada’s largest investment companies, CI Global Asset Management.
BTCX is available in CAD and USD (both unhedged). Its key facts as of September 7, 2021, are:
- Inception date: March 5, 2021
- Management fee:0.40%
- MER: Up to 0.95%
- Assets under management: $370 million
- Ticker: BTCX.B, BTCX.U
Like BTCC, BTCX is 100% held in cold storage and can be bought in a TFSA, RRSP, personal and corporate non-registered accounts, and more.
Evolve Bitcoin ETF (EBIT)
Evolve is an ETF provider that has recently branched into offering crypto ETFs, including a bitcoin ETF.
Evolve Bitcoin ETF (EBIT) uses the CME CF Bitcoin Reference Rate and is also available for options trading.
Key details for this fund include:
- Inception date: February 17, 2021
- Management fee: 0.75%
- MER: Not yet available
- Assets under management: $121.79 million
- Ticker: EBIT, EBIT.U
This fund can be held in both registered and non-registered accounts.
Given it is relatively new, performance data won’t be available until next year.
3iQ first introduced a bitcoin investment fund (QBTC) prior to offering an ETF with ticker symbols BTCQ and BTCQ.U in partnership with CoinShares, Europe’s largest digital asset fund manager.
Key details for BTCQ include:
- Inception date: March 31, 2021
- Management fee:1%
- MER: Up to 1.25%
- Assets under management: $1.1 billion
- Ticker: BTCQ, BTCQ.U
BTCQ is eligible for RRSP, TFSA, RRIF, RDSP, RESP, and other accounts. Like the others, it is rated as “high risk”.
How To Buy Bitcoin ETFs in Canada
The Bitcoin ETFs mentioned above are listed on the TSX and can be bought via a discount brokerage platform like Wealthsimple Trade and Questrade.
Wealthsimple Trade:
Wealthsimple Trade is Canada’s only brokerage platform to offer zero commission trading fees when you buy and sell stocks and ETFs.
Over 1.5 million people use this trading app to save on fees, and you can buy BTCC, BTCX, EBIT, and BTCQ easily on it.
When you open a new Wealthsimple Trade account here, you get a $25 cash bonus after depositing $150 or more.
New Wealthsimple Trade users also get a chance to win free stocks.
Questrade:
Questrade is one of the best brokerage platforms in Canada. It supports stock, ETFs, options, and currency trading.
All four Bitcoin ETFs can be purchased on Questrade for free, and you only pay a small fee when you sell.
New Questrade clients who sign up here get $50 in free trade credits when they fund their account with at least $1,000.
Best Ether ETFs in Canada
Investors who want to hold Ethereum in their portfolio can buy units of an ether ETF using a brokerage account.
Ether ETFs solely invest in ETH and keep them in cold storage. There are currently four Ether ETFs in Canada.
Purpose Ether ETF (ETHH)
Purpose Investments also enjoyed a first-mover advantage when it launched one of the first Ether ETFs in the world.
The Purpose Ether ETF (ETHH) is offered in Canadian dollars (hedged and unhedged) and U.S. dollars.
Key facts for ETHH include:
- Inception date: April 16, 2021
- Management fee: 1%
- MER: Up to 1.50%
- Assets under management: $325.6 million
- Ticker: ETHH, ETHH.B, ETHH.U
Similar to Bitcoin ETFs in Canada, this Ether ETF can be held in registered and non-registered investment accounts.
Also, its returns and performance data won’t be available until after 1 year from inception.
CI Galaxy Ethereum ETF (ETHX)
CI Galaxy Ethereum ETF (ETHX) is available in both CAD and USD and has one of the lowest management fees at 0.40%.
Key fund details include:
- Inception date: April 16, 2021
- Management date: 0.40%
- MER: Not yet available
- Assets under management: $883.68 million
- Ticker: ETHX, ETHX.U
Evolve Ether ETF (ETHR)
Evolver’s Ether ETF (ETHR) provides retail investors exposure to the daily price movements of Ether in U.S. dollars.
The fund can be purchased in both CAD and USD on the Toronto Stock Exchange.
Key facts for ETHR as of this writing include:
- Inception date: April 19, 2021
- Management fee: 0.75%
- MER: Not yet available
- Assets under management: $91.91 million
- Ticker: ETHR, ETHR.U
3iQ and CoinShares’ Ether ETF (ETHQ) is available in CAD and USD.
Its key details include:
- Inception date: April 19, 2021
- Management fee: 1%
- MER: Not yet available
- Ticker: ETHQ, ETHQ.U
This fund is eligible for registered accounts (RRSP, TFSA, and RESP) and non-registered accounts.
It held 0.00408892 ETH per unit of ETF on September 3, 2021.
How To Buy Ether ETFs in Canada
Like Bitcoin ETFs, Ether Exchange-Traded Funds are listed on the TSX and can be brought using registered brokers like Wealthsimple Trade and Questrade.
These two platforms minimize your investment fees which could mean higher returns over time.
You could also purchase Ether ETFs using big Canadian bank brokerages like TD Direct Investing, CIBC Investor’s Edge, and BMO InvestorLine.
Blockchain ETFs in the U.S.
Residents of the U.S. who want to invest in crypto ETFs can either purchase the USD-denominated bitcoin and Ether ETFs listed on the TSX or purchase a blockchain ETF.
Some of the best blockchain ETFs include:
- Amplify Transformational Data Sharing ETF (BLOK)
- First Trust Indxx Innovative Transaction & Process ETF (LEGR)
- Siren Nasdaq NexGen Economy ETF (BLCN)
If you’d like to get exposure to Bitcoin, you could also look at the Grayscale Bitcoin Trust (GBTC).
Top Bitcoin and Ethereum ETFs/ETPs in Europe
Cryptocurrency-related exchange-traded products (ETPs) in Europe offer access to the price of Bitcoin and Ethereum.
Popular Bitcoin ETPs include:
- BTC-ETC Group Physical Bitcoin
- WisdomTree Bitcoin
- CoinShares Physical Bitcoin
- 21Shares Bitcoin ETP
- Iconic Funds Physical Bitcoin ETP
Top Ethereum ETPs include:
- 21Shares Ethereum ETP
- CoinShares Physical Ethereum
- VanEck Vectors Ethereum ETN
- WisdomTree Ethereum
Benefits of Crypto ETFs
Crypto ETFs offer a number of advantages, including:
- They offer portfolio diversification using an asset with a low correlation to stocks and bonds.
- Remove the need to create a cryptocurrency account and purchase crypto directly.
- Remove the need to personally secure your coins in a cold wallet and keep your private keys safe.
- Managed by experts who work for a regulated investment firm.
- Liquid assets that are easy to buy and sell.
- Eligible for registered investment accounts like the RRSP and TFSA.
Downsides
- The management fees can be high at up to 2%
- Crypto ETFs only exist for a handful of coins
- Cryptocurrency is a high-risk investment security, and you could lose money.
Crypto ETF FAQs
Is there a Dogecoin ETF?
There is currently no Dogecoin ETF available in Canada or the United States.
How many bitcoin ETFs are in Canada?
There are four Bitcoin ETFs offered in Canada by Purpose Investments, Evolve ETFs, CI Investments, and 3iQ.
Can I buy Bitcoin ETFs in Canada?
Yes, you can purchase bitcoin ETFs through a brokerage platform like Questrade or Wealthsimple Trade.
How many Ether ETFs are in Canada?
Four Ethereum ETFs have received regulatory approval in Canada, and they are listed on the TSX.
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