Last updated Jul. 5, 2024 by Peter Jakes
16 Best Bitcoin and Ethereum ETF Crypto in Canada 2023
As cryptocurrencies like Bitcoin and Ethereum continue to gain mainstream traction, investors in Canada are increasingly looking towards Exchange-Traded Funds (ETFs) as a way to gain exposure to these digital assets without directly purchasing them. ETFs offer a more traditional investment vehicle while still providing the benefits of crypto asset growth. Here’s a detailed guide on the 16 best Bitcoin and Ethereum ETFs in Canada for 2023, designed to help you make informed investment decisions.
1. Purpose Bitcoin ETF (BTCC)
Purpose Bitcoin ETF (BTCC) stands out as one of the first Bitcoin ETFs to launch in Canada. It is designed to provide investors with efficient access to Bitcoin by holding nearly 100% of its assets in Bitcoin. It offers a simple yet effective way to get exposure to Bitcoin without dealing with the complexities of crypto wallets.
2. Evolve Bitcoin ETF (EBIT)
The Evolve Bitcoin ETF (EBIT) also came onto the scene early and provides exposure to Bitcoin daily price movements in USD. The fund has become popular due to its multi-layered security protocols which help safeguard the underlying assets from hacks and thefts.
3. CI Galaxy Bitcoin ETF (BTCX)
CI Galaxy Bitcoin ETF (BTCX) offers investors exposure to Bitcoin with one of the lowest management fees available. The ETF follows the Bloomberg Galaxy Bitcoin Index, which makes it an attractive choice for cost-conscious investors.
4. 3iQ CoinShares Bitcoin ETF (BTCQ)
The 3iQ CoinShares Bitcoin ETF (BTCQ) combines the expertise of one of Canada’s premier digital asset managers with that of a leading European digital asset firm, giving investors access to Bitcoin at a competitive fee.
5. Purpose Ether ETF (ETHH)
Purpose Ether ETF (ETHH) is specifically designed for Ethereum enthusiasts. This ETF provides direct exposure to Ether, the native token of the Ethereum network. It helps investors gain exposure to decentralized finance (DeFi) projects based on the Ethereum blockchain.
6. CI Galaxy Ethereum ETF (ETHX)
The CI Galaxy Ethereum ETF (ETHX) allows investors to buy and hold Ether without the risks of digital wallets and private keys. With low management fees, ETHX has become a popular choice for those looking to invest in Ethereum.
7. Evolve Ether ETF (ETHR)
The Evolve Ether ETF (ETHR) offers exposure to the daily price changes of Ether. This ETF provides a secure and efficient way to gain exposure to Ethereum, benefiting from Evolve’s rigorous security measures.
8. Fidelity Advantage Bitcoin ETF (FBIT)
Fidelity Advantage Bitcoin ETF (FBIT) provides a secure and cost-effective vehicle for Bitcoin exposure. Fidelity’s strong reputation and robust security protocols make it a reliable choice for investors.
9. Horizons Bitcoin Front Month Rolling Futures ETF (HBIT)
Horizons Bitcoin Front Month Rolling Futures ETF (HBIT) offers exposure to Bitcoin futures contracts, which provides a different risk profile compared to ETFs that hold Bitcoin directly. This ETF is ideal for investors looking for alternative ways to tap into the potential of Bitcoin.
10. 3iQ CoinShares Ether ETF (ETHQ)
The 3iQ CoinShares Ether ETF (ETHQ) enables investors to gain exposure to Ethereum. It combines low fees with diversified management expertise, making it ideal for those focused specifically on Ether.
11. CI Bitcoin Managed ETF (CBTC)
CI Bitcoin Managed ETF (CBTC) is a well-rounded option that offers actively managed exposure to Bitcoin. This ETF stands out by dynamically adjusting its holdings in response to market conditions.
12. Ninepoint Bitcoin ETF (BITC)
Ninepoint Bitcoin ETF (BITC) aims to attract investors by offering an eco-friendly approach. It uses carbon offset credits to compensate for the environmental impact of Bitcoin mining, appealing to green-conscious investors.
13. Arxnovum Bitcoin ETF (BITM)
Arxnovum Bitcoin ETF (BITM) offers another entry point for those interested in Bitcoin. Managed by Arxnovum Investments, it provides investors with a reliable and secure asset allocation strategy.
✓ Short Answer
This article covers the top 16 Bitcoin and Ethereum ETFs available in Canada for 2023. It includes ETFs managed by reputable firms like Purpose, Evolve, CI Galaxy, and Fidelity, among others. Each ETF is highlighted for its unique features, such as low fees, strong security measures, and eco-friendly practices. By choosing the right ETF, investors can tap into the growth potential of cryptocurrencies without the complexities of direct ownership.
14. Harvest Portfolio Blockchain Technologies ETF (HBLK)
Harvest Portfolio Blockchain Technologies ETF (HBLK) offers a broader approach. This ETF invests in companies associated with blockchain technologies, providing indirect exposure to Bitcoin and Ethereum’s underlying infrastructure.
15. Bitcoin Fund (QBTC)
The Bitcoin Fund (QBTC) is not strictly an ETF, but it functions similarly by providing a secure managed exposure to Bitcoin. It caters to accredited investors looking for simplified Bitcoin ownership through traditional financial markets.
16. Ether Fund (QETH)
Similar to the Bitcoin Fund, the Ether Fund (QETH) offers managed exposure to Ethereum. It provides investors with an easily accessible route to invest in the second-largest cryptocurrency by market capitalization.
FAQs
Q1: What is an ETF?
An Exchange-Traded Fund (ETF) is a type of investment fund that pools money from many investors to purchase a diversified collection of assets, which can include stocks, bonds, and commodities. ETFs are traded on major stock exchanges.
Q2: Why invest in a Bitcoin or Ethereum ETF?
Investing in a Bitcoin or Ethereum ETF provides exposure to the price movements of these cryptocurrencies without the need to manage private keys or digital wallets. It also offers a regulated environment and, in some cases, tax efficiency.
Q3: Are these ETFs safe?
While no investment is entirely free of risk, these ETFs are managed by established financial institutions with robust security measures in place. Always research and consider the risks before investing.
Q4: How do ETFs differ from direct cryptocurrency investments?
ETFs are traded on stock exchanges and provide indirect exposure to cryptocurrencies, often with added benefits like professional management and regulatory oversight. Direct investments require the management of digital wallets and private keys.
Q5: What are management fees and why are they important?
Management fees are charges levied annually by the fund managers for managing the ETF. Lower fees generally mean more of your money is kept within the fund, potentially leading to higher returns over time.
Q6: Can I invest in these ETFs through tax-advantaged accounts in Canada?
Yes, many of these ETFs can be held in tax-advantaged accounts like Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs).
Q7: Do these ETFs pay dividends?
Typically, cryptocurrency ETFs do not pay dividends as they are focused on capital appreciation rather than income generation.
By understanding these ETFs and their unique attributes, you can make more informed decisions in your cryptocurrency investment journey.
