Cryptocurrency ETFs package crypto assets into a format easily accessible by investors who are more comfortable with mainstream investment assets.
When you buy Bitcoin ETFs or Ethereum ETFs, for instance, you gain exposure to the underlying cryptocurrency (BTC or ETH) without having to worry about the intricacies of cold wallets or all the other custodial technicalities that come with buying and holding these coins directly.
The first crypto ETFs in North America were launched in Canada and are traded on the Toronto Stock Exchange.
While several crypto ETFs are vying for approval in the United States, U.S. regulators are still on the fence about the risks they pose to investors.
This article covers the nine best cryptocurrency ETFs you can own in Canada.
Best Canadian Crypto ETFs of 2024
Crypto ETFs are designed for investors who want exposure to cryptocurrency in their search for long-term capital growth.
These funds are best suited for individuals with higher-than-average risk tolerance.
Best Bitcoin ETFs in Canada
The top four Canadian Bitcoin ETFs are offered by:
- Purpose Investments: Purpose Bitcoin ETF (BTCC)
- Evolve Funds Group Inc: Evolve Bitcoin ETF (EBIT)
- CI Global Asset Management: CI Galaxy Bitcoin ETF (BTCX)
- 3iQ Corp: 3iQ CoinShares Bitcoin ETF (BTCQ)
There are two other more recent Bitcoin ETFs: Ninepoint Bitcoin ETF (BITC) and Fidelity Advantage Bitcoin ETF (FBTC).
1. Purpose Bitcoin ETF
The Purpose Bitcoin ETF (BTCC) was the world’s first Bitcoin ETF. It is available in Canadian and U.S. dollars and also has a version that is hedged against foreign currency fluctuations.
Key facts for BTCC as of April 23, 2024, are:
- Ticker: BTCC, BTCC.B, BTCC.U
- Inception date: February 11, 2021
- Assets under management (AUM): $2.5 billion
- Management fee: 1.00%
- Listing currency: CAD and USD
Purpose Investments buys bitcoin for the fund and keeps 100% of its holdings in cold storage.
BTCC can be purchased in both registered and non-registered investment accounts.
The current management fee is 1.00%, and the Management Expense Ratio (MER) is capped at 1.50%.
BTCC and other crypto ETFs have a “high” risk rating as they are fully invested in a single digital asset and offer no diversification across cryptocurrencies in general.
The non-FX hedged ETF has had a 149.79% return over the last 1 year, as of March 28, 2024.
You can buy BTCC (and the other ETFs) using a no-commission brokerage account like Questrade.
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2. CI Galaxy Bitcoin ETF
The CI Galaxy Bitcoin ETF (BTCX) provides exposure to bitcoin and has the lowest management fee of the four bitcoin ETFs in Canada (0.4%).
Key facts for BTCX as of April 23, 2024, include:
- Ticker: BTCX.B; BTCX.U
- Inception: March 5, 2021
- AUM: $766.81 million
- Management fee: 0.40%
- Listing currency CAD and USD
This fund can be bought in taxable and registered investment accounts like the RRSP and TFSA.
As per the company’s website, the MER for BTCX is 0.76%. It is up 72.3% in 2024 as of March 31, 2024.
3. Evolve Bitcoin ETF
Evolve Bitcoin ETF (EBIT) is available in CAD and USD. It uses the CME CF Bitcoin Reference Rate for the benchmark index.
Fund details for EBIT as of April 23, 2024, are:
- Ticker: EBIT; EBIT.U
- Inception: February 17, 2021
- AUM: $215 million
- Management fee: 0.75%
- Listing currency: CAD and USD
EBIT’s management fee is 25 basis points lower than BTCC’s at 0.75%. Also, its performance so far this year is 61.49% (8.52% since inception).
The 3iQ CoinShares Bitcoin ETF (BTCQ) is offered by 3iQ Corp in partnership with CoinShares. It is also listed in Canadian and U.S. dollars.
Some key details for this ETF:
- Ticker: BTCQ; BTCQ.U
- Inception: March 31, 2021
- AUM: $327 million
- Management fee: 1%
- Listing currency: CAD and USD
The MER for BTCQ is capped at 1.25%, and this fund is also eligible for registered and non-registered accounts.
BTCQ’s return so far in 2023 is 68% (as of March 2024).
Best Ethereum ETFs in Canada
The four investment firms listed above also offer Ether ETFs as follows:
1. Purpose Ether ETF
You can own Ether and benefit from its growth (assuming it does well over time) by purchasing the Purpose Ether ETF (ETHH).
Its details as of April 23, 2024, include:
- Ticker: ETHH; ETHH.B; ETHH.U
- Inception: April 16, 2021
- AUM: $438 million
- Management fee: 1.00%
- Listing currency: CAD and USD
The MER for ETHH is capped at 1.50%. This fund has had a 49.91% return year to date as of March 2024.
All the Ether ETFs in Canada are 100% invested in Ether, and the crypto is held in cold storage.
2. CI Galaxy Ethereum
Similar to its bitcoin ETF offering, the CI Galaxy Ethereum has the lowest management fee at 0.40%. Its MER is also not expected to surpass 0.95%.
ETHX.B details as of April 23, 2024, include:
- Ticker: ETHX.B; ETHX.U
- Inception: April 16, 2021
- AUM: $600 million
- Management fee: 0.40% (0.74% MER)
- Listing currency: CAD and USD
This ETF has had a 94.8% return over the last 1 year (as of March 2024).
3. Evolve Ether ETF
The Evolve Ether ETF (ETHR) was the CME CF Ether-Dollar Reference Rate benchmark index and is available in Canadian and U.S. dollars on the TSX.
It can also be traded using options on the Montréal Exchange:
ETHR details include as of April 23, 2024:
- Ticker: ETHR; ETHR.U
- Inception: April 19, 2021
- AUM: $79 million
- Management fee: 0.75%
- Listing currency: CAD and USD
This ETF has had a 68.1% return over the last 1 year.
The 3iQ CoinShares Ether ETF is the fourth Ether ETF approved in 2021.
It is listed on the TSX in both Canadian and U.S. dollars and has a management fee of 1.00%, like Purpose’s ETHH.
Key fund details for ETHQ as of April 23, 2024, include:
- Ticker: ETHQ; ETHQ.U
- Inception: April 19, 2021
- AUM: $61 million
- Management fee: 1.00%
- Listing currency: CAD and USD
This ETF has had a 94% return over the last 1 year.
Bitcoin and Ethereum ETFs
A combined Bitcoin and Ether ETF (ETC) was recently launched in Canada:
Evolve Cryptocurrencies ETF
Evolve’s Cryptocurrencies ETF is Canada’s first multi-cryptocurrency ETF. Key facts for this fund as of April 23, 2024, are:
- Ticker: ETC
- Inception date: September 29, 2021
- AUM: $41 million
- Management fee: 0% (0.75% for underlying ETFs)
- Listing currency: USD and CAD
ETC aims to expose investors to the cryptocurrency markets by holding Bitcoin via EBIT (68.25%) and Ether via ETHR (31.75%).
Although ETC does not have a management fee, the MER charged by its constituent ETFs applies yearly (0.75%).
ETC has returned 55.12% year to date, as of April 2024.
Crypto ETFs Explained
So far, there are three broad types of crypto ETFs in Canada – Bitcoin, Ethereum, and Bitcoin+Ether ETFs.
These Exchange Traded Funds invest directly in the actual crypto and hold them in cold storage.
Essentially, when you purchase a crypto ETF, you are buying a digital asset, and the value of your holdings will vary based on the performance of the underlying cryptocurrency.
Crypto ETFs are not the same as blockchain ETFs which are ETFs with holdings in companies that develop or use blockchain technologies.
Like other ETFs, you can purchase a crypto ETF using a brokerage account.
How To Buy Crypto ETFs in Canada
You can purchase crypto ETFs on most Canadian brokerage platforms that offer stock and ETF trading.
Our top choice is Questrade.
Questrade: Crypto ETF purchases are free on Questrade. When you sell, you pay a low transaction fee. New clients who deposit at least $1,000 get $50 in free trade credits. Get more details in this review.
Pros of Crypto ETFs
The cryptocurrency world is still shrouded in mystery, and it can be challenging for non-crypto enthusiasts to “separate the wheat from the chaff.”
What crypto ETFs do is they add legitimacy to the most popular digital assets- Bitcoin and ETF by making them available via regulated channels.
Like traditional stocks and ETFs, you can purchase crypto ETFs on an exchange using brokerage platforms that are regulated by CIPF and IIROC.
If these brokerages were to become bankrupt, your funds would be insured up to $1 million.
Crypto ETFs also remove the need to take custody of the coins yourself.
You don’t need to buy a cryptocurrency cold wallet like Ledger Nano X or Trezor, or worry about losing your private keys.
The cryptocurrency industry is in its nascent stages. If government regulation does not kill it and blockchain technology and Decentralized Finance (DeFi) takes off, your investments could generate outstanding returns.
If you make money while holding your crypto ETF in a tax-sheltered account (e.g. TFSA), these returns are tax-free or tax-deferred if held in an RRSP.
Crypto can provide added diversification to your investment portfolio.
Cons of Crypto ETFs
Crypto assets experience significant price volatility and are unsuitable for investors with a low appetite for risk.
Price drops of up to 50% within weeks are par for the course for these assets.
The management fees charged by these funds eat into your returns. For example, BTCC will charge up to a 1.50% Management Expense Ratio. This is equivalent to $15 in fees per $1,000 investment per year.
If you are comfortable buying cryptocurrency directly, you can use one of the best cryptocurrency trading apps in Canada.
Note that direct crypto purchases also incur fees and have some downsides.
If you decide later that you’d rather own the physical cryptocurrency and not the ETF, you can’t switch them 1:1 without first selling the ETF and triggering a taxable event.
Blockchain Stocks and ETFs
Blockchain ETFs provide exposure to stocks of companies that create, support, or use blockchain technologies.
The top 5 blockchain ETFs are:
- Amplify Transformational Data Sharing ETF (BLOK)
- Siren Nasdaq NexGen Economy ETF (BLCN)
- First Trust Index Innovative Transaction & Process ETF (LEGR)
- VanEck Vectors Digital Transformation ETF (DAPP)
- Capital Link NextGen Protocol ETF (KOIN)
Best Canadian Crypto ETF FAQs
Based on low management fees, the best bitcoin ETF in Canada is the CI Galaxy Bitcoin ETF (BTCX).
The best Ether ETF in Canada is the CI Galaxy Ethereum ETF. It has the lowest management fee at 0.40%.
There are 11+ Canadian cryptocurrency ETFs as of this writing.
No. There is no Dogecoin ETF with a primary investment in the Dogecoin token.
No, there is no Vanguard Cryptocurrency ETF. That said, Fidelity Investments is one of the firms seeking approval from the SEC to launch a Bitcoin ETF in the U.S.
Related: Best Cold Wallets in Canada.
CI Galaxy Bitcoin ETFs (BTCX.B, BTCX.U) have posted MERs as per March 2022 ETF Facts of 85bps.
CI Galaxy Ethereum ETFs (ETHX.B, ETHX.U) have posted MERs as per March 2022 ETF Facts of 74bps and 73bps respectively.