Cryptocurrency investments have become a popular way for investors to diversify their portfolios and access potentially significant returns. Canada is no stranger to this trend, as many Canadians are trading cryptocurrencies and looking to benefit from the asset’s volatility.
One of the most accessible ways to invest in cryptocurrencies is through exchange-traded funds (ETFs). ETFs are baskets of various stocks that are traded in a similar manner to stocks. ETFs give investors exposure to a range of cryptocurrencies without having to purchase individual tokens.
In this article, we’re going to take a look at the 11 Canadian cryptocurrency ETFs available to investors. We’ll discuss the ETFs’ structures, products offered, fees, and returns.
The first ETF is the Purpose Bitcoin ETF (Ticker: BTCC). This ETF offers exposure to physical Bitcoin without the need for manual storage. The fund only invests in Bitcoin, unlike some of the other ETFs which offer exposure to a basket of different cryptocurrencies. The fund also has the lowest management fee of any of the Canadian ETFs, with an MER of 0.6%.
Next, we have the Evolve Bitcoin ETF (Ticker: EBIT). This ETF provides exposure to Bitcoin futures and has an MER of 0.75%. This fund also hedges its cryptocurrency exposure using the Chicago Mercantile Exchange as well as other established cryptocurrency exchanges. This ETF has the most assets under management out of the Canadian ETFs and is the largest of its kind trading on the Toronto Stock Exchange.
The third ETF is the CI Galaxy Bitcoin ETF (Ticker: BTCX). This ETF has an MER of 1.27% and invests in Bitcoin futures. It also provides investors with exposure to other digital assets, including Ethereum, Litecoin, and XRP.
We also have the Horizons Bitcoin ETF (Ticker: HBTC). This ETF offers exposure to physical Bitcoin and has a corresponding management fee of 0.9%. Unlike some of the other ETFs, this fund does not offer exposure to other digital currencies.
The fifth ETF is the First Block Capital Bitcoin Trust (Ticker: FBCBT). This fund is the only one that provides exposure to physical Bitcoin and has a corresponding management fee of 1.00%. It also allows for fractional ownership, which is not available in some of the other ETFs.
There are also the Evolve Ethereum ETF (Ticker: ETHH), the CI Galaxy Ethereum ETF (Ticker: ETHX), the CI Galaxy Ethereum Classic ETF (Ticker: ETCX), the CI Galaxy Litecoin ETF (Ticker: LTCX), and the CI Galaxy XRP ETF (Ticker: XRPX). All of these ETFs offer exposure to the corresponding cryptocurrencies, with the EVolve Ethereum ETF having the lowest MER of 0.75%.
Finally, we have the 3iQ Digital Asset Fund (Ticker: QDAF). This ETF has the highest fee structure of the Canadian ETFs, with an MER of 2.00%. The fund also has the most diverse exposure, providing investors with access to a variety of digital assets, including Bitcoin, Ethereum, Litecoin, and XRP, among others.
In conclusion, these 11 Canadian cryptocurrency ETFs provide investors with easy access to a range of digital assets. It is important to remember, however, that like any investment, the return of an ETF depends on factors such as fees, the asset mix held and market conditions. Investors should always evaluate the ETFs available to them and carefully consider their objectives and risk tolerance before making any investment decisions.
