Where to Buy Bitcoin ETFs in Canada

If you're looking to invest in Bitcoin through an ETF (Exchange-Traded Fund) in Canada, there are several options available that cater to various investor preferences and needs. Bitcoin ETFs offer a convenient way to gain exposure to Bitcoin without the need to directly buy and store the cryptocurrency. This article will guide you through some of the most popular Bitcoin ETFs available in Canada, how to purchase them, and the benefits they offer.

1. Purpose Bitcoin ETF (BTCC)

The Purpose Bitcoin ETF, launched in February 2021, was the first Bitcoin ETF approved in Canada. It is managed by Purpose Investments and provides investors with exposure to Bitcoin by holding actual Bitcoin. The ETF is traded on the Toronto Stock Exchange (TSE) under the ticker symbol BTCC. Investors can buy BTCC through their brokerage accounts in the same way they would buy stocks.

Key Features:

• Physical Bitcoin holdings: This ETF holds actual Bitcoin, which is stored in a secure vault.
• Liquidity: It is one of the most liquid Bitcoin ETFs available, allowing for easy buying and selling.
• Management fees: The management expense ratio (MER) is competitive, making it an attractive option for investors.

2. Evolve Bitcoin ETF (EBIT)

Another notable Bitcoin ETF in Canada is the Evolve Bitcoin ETF, which began trading in February 2021. Managed by Evolve ETFs, EBIT offers exposure to Bitcoin through a fund that also holds actual Bitcoin. This ETF is listed on the Toronto Stock Exchange under the ticker EBIT.

Key Features:

• Direct Bitcoin exposure: Similar to BTCC, EBIT holds Bitcoin directly, providing investors with a direct link to the cryptocurrency’s performance.
• High liquidity: It benefits from high trading volume, making it easy to trade.
• Competitive fees: The ETF has a low management fee structure, which is favorable for long-term investors.

3. CI Galaxy Bitcoin ETF (BTCX)

The CI Galaxy Bitcoin ETF, managed by CI Global Asset Management and Galaxy Digital, is another popular option. Launched in March 2021, BTCX provides investors with exposure to Bitcoin by holding physical Bitcoin in a secure vault. This ETF is also traded on the Toronto Stock Exchange under the ticker BTCX.

Key Features:

• Secure Bitcoin storage: Bitcoin holdings are stored in a secure manner, reducing the risk of theft.
• High liquidity and volume: BTCX offers high liquidity, which can be beneficial for both small and large transactions.
• Management fees: The ETF's management fees are in line with industry standards, making it a cost-effective choice.

How to Purchase Bitcoin ETFs in Canada

To purchase Bitcoin ETFs in Canada, follow these steps:

1. Choose a Brokerage Account: Open an account with a brokerage firm that offers access to the Toronto Stock Exchange. Popular options include Questrade, Wealthsimple Trade, and TD Direct Investing.

2. Fund Your Account: Deposit funds into your brokerage account. This can usually be done via bank transfer or other accepted methods.

3. Search for the ETF: Use the brokerage’s platform to search for the Bitcoin ETF you wish to invest in by its ticker symbol (e.g., BTCC, EBIT, BTCX).

4. Place Your Order: Decide how many shares you want to buy and place your order. You can choose between market orders (buy at the current market price) or limit orders (buy at a specified price).

5. Monitor Your Investment: After purchasing, keep an eye on your investment’s performance and make adjustments as needed based on your financial goals and market conditions.

Benefits of Investing in Bitcoin ETFs

1. Convenience: Bitcoin ETFs provide a straightforward way to gain exposure to Bitcoin without the complexities of buying, storing, and securing the cryptocurrency yourself.

2. Regulation: ETFs are regulated financial products, offering a layer of security and transparency compared to investing in Bitcoin directly.

3. Diversification: Investing in Bitcoin ETFs can be part of a diversified investment strategy, allowing you to balance your portfolio with different asset classes.

4. Liquidity: ETFs generally offer high liquidity, making it easier to buy and sell shares compared to trading Bitcoin directly on cryptocurrency exchanges.

Conclusion

Investing in Bitcoin ETFs in Canada is an attractive option for those looking to gain exposure to Bitcoin without dealing with the challenges of owning and securing the cryptocurrency. The Purpose Bitcoin ETF (BTCC), Evolve Bitcoin ETF (EBIT), and CI Galaxy Bitcoin ETF (BTCX) are some of the top choices available, each offering unique features and benefits. By following the outlined steps, you can easily purchase these ETFs through a brokerage account and take advantage of the convenience and security they offer.