Are Bitcoin ETFs available in Canada?

Canadian investors can easily access Bitcoin through regulated ETFs like BTCC, EBIT, and BTCX, offering secure, tax-efficient exposure to the cryptocurrency without needing a crypto exchange.

Jul 18, 2025 at 06:43 am

What Are Bitcoin ETFs?

Bitcoin ETFs, or Exchange-Traded Funds, are investment vehicles that track the price of Bitcoin without requiring investors to directly own the cryptocurrency. These funds are traded on traditional stock exchanges, offering a more regulated and accessible way to gain exposure to Bitcoin. For many investors, especially those unfamiliar with digital wallets or blockchain technology, Bitcoin ETFs provide a familiar and secure alternative. These ETFs are typically backed by actual Bitcoin holdings, and their value fluctuates in line with the underlying asset.

Availability of Bitcoin ETFs in Canada

Yes, Bitcoin ETFs are available in Canada. In fact, Canada was one of the first countries to approve a Bitcoin ETF for retail investors. The Purpose Bitcoin ETF (BTCC) launched in February 2021 and quickly gained traction among investors. This ETF allows individuals to gain exposure to Bitcoin through a traditional brokerage account, without the need to interact directly with cryptocurrency exchanges. Several other providers have since followed, offering a variety of Bitcoin ETF options in the Canadian market. These include the Evolve Bitcoin ETF (EBIT) and the CI Galaxy Bitcoin ETF (BTCX), among others.

How to Invest in Bitcoin ETFs in Canada

To invest in Bitcoin ETFs in Canada, investors must follow a few key steps. First, they need a brokerage account that provides access to the Toronto Stock Exchange (TSX) or other Canadian exchanges where these ETFs are listed. Many Canadian brokers, including Questrade, Wealthsimple, and Scotia iTrade, offer access to Bitcoin ETFs. Once the account is set up, investors can search for the ticker symbol of the desired ETF—such as BTCC for the Purpose Bitcoin ETF. Investors should review the fund’s prospectus, management fees, and historical performance before making a purchase. Transactions are executed just like buying any other stock, and ownership is reflected in the investor’s portfolio.

Regulatory Environment for Bitcoin ETFs in Canada

The regulatory environment for Bitcoin ETFs in Canada is overseen by provincial securities regulators, primarily the Ontario Securities Commission (OSC). These regulators have taken a progressive stance compared to some other jurisdictions. The approval of the Purpose Bitcoin ETF marked a significant milestone, as it was the first of its kind globally. The regulatory framework ensures that the ETFs are backed by real Bitcoin holdings and that custodial arrangements are secure. Additionally, these funds must comply with regular reporting and disclosure requirements, offering transparency to investors. The Canadian regulatory approach has encouraged innovation while maintaining investor protection standards.

Benefits of Investing in Bitcoin ETFs in Canada

There are several benefits of investing in Bitcoin ETFs in Canada. One of the most notable is the ease of access for traditional investors who may not want to navigate cryptocurrency exchanges. ETFs eliminate the need for private key management and reduce the risk of theft or loss associated with direct ownership of Bitcoin. Furthermore, Bitcoin ETFs offer tax advantages, as they are treated like any other equity investment, simplifying reporting for Canadian tax purposes. These funds also provide liquidity, as they can be bought and sold during regular market hours. Lastly, for investors who value regulatory oversight, Canadian Bitcoin ETFs offer a level of security and transparency that may not be present in direct crypto investments.

Comparison of Available Bitcoin ETFs in Canada

There are several Bitcoin ETFs available in Canada, each with its own features and fee structure. The Purpose Bitcoin ETF (BTCC) was the first to launch and remains one of the most popular. It charges a management fee of 0.40% and is backed by physically held Bitcoin. The Evolve Bitcoin ETF (EBIT) offers a lower fee structure at 0.30%, and it also holds Bitcoin directly. The CI Galaxy Bitcoin ETF (BTCX) is another option, with a management fee of 0.40% and similar custodial arrangements. Investors should compare these options based on expense ratios, liquidity, and the reputation of the fund provider. Each of these Bitcoin ETFs in Canada offers exposure to Bitcoin with slight variations in cost and structure.

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Frequently Asked Questions

What is the minimum investment required for Bitcoin ETFs in Canada?

There is no set minimum investment for Bitcoin ETFs in Canada. Investors can purchase as little as one share of the ETF through their brokerage platform. The cost will depend on the ETF’s current market price and any trading fees charged by the broker.

Are Bitcoin ETFs in Canada backed by actual Bitcoin?

Yes, all Bitcoin ETFs in Canada are backed by actual Bitcoin holdings. These funds store the underlying Bitcoin with trusted custodians to ensure security and transparency. Investors can verify this through the fund’s official reports and disclosures.

Can I hold Bitcoin ETFs in a tax-advantaged account in Canada?

Yes, Bitcoin ETFs can be held in tax-advantaged accounts such as Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs). This allows investors to benefit from tax-free or tax-deferred growth within these accounts.

Do Bitcoin ETFs in Canada pay dividends?

No, Bitcoin ETFs in Canada do not pay dividends. Since they track the price of Bitcoin and do not generate income from interest or dividends, investors realize gains or losses based on the change in the ETF’s price.