which bitcoin etf is best in canada

BTCC.U, the first North American Bitcoin ETF, provides investors with direct spot price exposure and high trading volume at a low expense ratio.

Oct 25, 2024 at 05:32 pm

Best Bitcoin ETFs in Canada

Bitcoin ETFs (exchange-traded funds) provide investors with exposure to the price of Bitcoin without having to directly own or store the cryptocurrency. They trade on regulated stock exchanges, offering liquidity, transparency, and ease of access. Here are the top Bitcoin ETFs available in Canada:

1. Purpose Bitcoin ETF (BTCC.U)

• Issuer: Purpose Investments
• Launch Date: February 2021
• Expense Ratio: 1.00%

BTCC.U is the first Bitcoin ETF approved in North America, providing investors with direct exposure to Bitcoin's spot price. It offers a low expense ratio and high trading volume.

2. Evolve Bitcoin ETF (EBIT)

• Issuer: Evolve Funds Group
• Launch Date: March 2021
• Expense Ratio: 0.75%

EBIT is an actively managed Bitcoin ETF that seeks to track the spot price of Bitcoin minus a management fee. It offers a lower expense ratio than BTCC.U and has seen strong trading volume.

3. CI Galaxy Bitcoin ETF (BTCX)

• Issuer: CI Investments
• Launch Date: April 2021
• Expense Ratio: 0.40%

BTCX is a synthetic Bitcoin ETF that tracks Bitcoin's spot price through a swap contract with Galaxy Digital. It offers the lowest expense ratio among Canadian Bitcoin ETFs and provides exposure to Bitcoin without physical ownership.

4. Ninepoint Bitcoin ETF (BITC)

• Issuer: Ninepoint Partners
• Launch Date: June 2021
• Expense Ratio: 0.70%

BITC is an actively managed Bitcoin ETF that invests in a basket of Bitcoin-related assets, including futures contracts, options, and derivatives. It provides diversification and seeks to reduce volatility compared to direct Bitcoin exposure.

5. Horizons Bitcoin ETF (HBIT)

• Issuer: Horizons ETFs Management
• Launch Date: January 2023
• Expense Ratio: 0.65%

HBIT is a passively managed Bitcoin ETF that provides exposure to bitcoin's spot price. It is backed by physical bitcoin held in custody by BitGo.

Factors to Consider When Choosing a Bitcoin ETF

When selecting a Bitcoin ETF, investors should consider the following factors:

• Expense Ratio: The annual fee that covers the fund's operating costs.
• Trading Volume: The number of shares traded daily, which affects liquidity and bid-ask spreads.
• Management Style: Active ETFs use leverage or derivatives to potentially enhance returns, while passive ETFs passively track the spot price of Bitcoin.
• Investment Structure: Physical ETFs hold Bitcoin directly, while synthetic ETFs use derivatives to provide exposure.
• Issuer Reputation: The experience and track record of the ETF issuer.

By carefully considering these factors, investors can choose the Bitcoin ETF that best aligns with their investment goals and preferences.