Bitcoin ETFs are exchange-traded funds that allow investors to gain exposure to the Bitcoin cryptocurrency without having to physically purchase and store Bitcoins. Over the past few years, several Bitcoin ETFs have been launched in Canada.
These financial instruments track the price of Bitcoin by holding physical Bitcoins in trust for unit holders. This allows investors to invest in Bitcoin without worrying about the security and management of their own cryptocurrency portfolio.
Bitcoin ETFs are listed on regulated exchanges, making them more accessible and easier to buy for institutional and individual investors. Bitcoin ETFs are also regulated, giving them some legitimacy and greater transparency.
However, investing in Bitcoin ETFs carries risks, including price volatility, regulation, and security risks associated with owning Bitcoin. Investors should therefore exercise caution and conduct their own research before investing in Bitcoin ETFs.
Here is the performance over the past twelve months of the ETFs mentioned in this article.
Note that BTCY.B underperforms the other ETFs in this graph, as it does not take into account the 12.5% distribution it offers.
Here is my list of favorite Bitcoin ETFs. Information regarding their performance and volume is based on non-hedged versions in Canadian dollars. In general, these funds all operate in the same way, tracking the price of Bitcoin and holding Bitcoins in cold storage. The difference is mainly in the management fees, so it is better to choose an ETF with reduced fees. Although there are many online lists of the best Canadian Bitcoin ETFs, I prefer Bitcoin ETFs that are "optionable" because I like to sell calls and puts on the positions I hold or wish to acquire in order to generate income from an asset I appreciate.
CI Galaxy Bitcoin
My favorite ETF. It offers the lowest management fees, a good volume on the Toronto Stock Exchange, the largest portfolio on this list, and offers monthly options. All under the management of a major company.
BTCX.B CAD non-hedged
BTCX.U USD
Management fee 0.40%
MER fee 0.83%
Total net assets (in CAD) $215 million
Creation date March 5, 2021
Daily volume 134K
Optionable Yes (monthly only)
Evolve Bitcoin
I believe they recently reduced their management fees, hopefully resulting in better fund performance. Decent volume and option possibility.
EBIT CAD non-hedged
EBIT.U USD
Management fee 0.75%
MER fee 0.85%
Total net assets (in CAD) $86 million
Creation date February 17, 2021
Daily volume 30K
Optionable Yes (monthly only)
Fidelity Bitcoin Advantage
Competitive management fees, to keep an eye on.
FBTC CAD non-hedged
FBTC.U USD
Management fee 0.40%
MER fee 0.95%
Total net assets (in CAD) $62 million
Creation date November 30, 2021
Daily volume 6K
Optionable No
3iQ CoinShares Bitcoin
High management fees, but options are possible.
BTCQ CAD non-hedged
BTCQ.U USD
Management fee 1.00%
MER fee 1.40% T
otal net assets (in CAD) $84 million
Creation date March 31, 2021
Daily volume 28K
Optionable Yes (monthly only)
Purpose Bitcoin Yield
Presents itself as the very first Bitcoin ETF focused on yield, displaying an annual yield of 12.5%. This result is achieved through the sale of covered call options on their assets. Purpose is also the company that offers the widest variety of Bitcoin-related ETFs. A version of their traditional Bitcoin ETF, carbon-neutralized, is also available.
BTCY.B CAD non-hedged
BTCY CAD Hedged
BTCY.U USD
Management fee 1.10%
MER fee 1.28%
Total net assets (in $CAD) $52 million
Inception date November 30, 2021
Daily volume 4K
Optionable No
Thank you for your interest and time. Please note that this article is not investment advice.
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