Easy Access the Crypto Market in Canada: Canadian Crypto ETFs
Key takeaways
Regulated Access to Crypto – Canadian crypto ETFs trade on traditional stock exchanges, offering investors a regulated and transparent way to gain exposure. They eliminate the need for private wallets or direct cryptocurrency transactions.
Bitcoin & Ethereum Dominance – Most crypto ETFs in Canada focus on Bitcoin and Ethereum, the two largest digital assets by market capitalization. These ETFs provide exposure to the price movements of these assets without the complexities of direct ownership.
Yield-Generating Options Available – Some ETFs offer a covered-call strategy, providing additional yield through options premiums. While this can generate income, it may limit upside potential during strong market rallies.
One ETF I like way better than the ones on this list.There are many ways to gain exposure to cryptocurrency. But lets be honest, most of them are either hard to comprehend or just outright terrify people. Many people get confused or nervous about things like a digital wallet, blockchain technologies, cryptocurrency exchanges, and just digital assets in general.
So, the fact that you can go into your brokerage account like Questrade, Qtrade, or even Wealthsimple Trade and buy cryptocurrencies in a single click of a button is a bonus.
As Canadians, we are fortunate to have several Canadian ETFs covering the most popular cryptocurrencies in the industry on the Toronto Stock Exchange. Countries like the United States have dragged their feet when it comes to ETFs, just recently releasing Bitcoin and Ethereum ETFs.
This has created some intense competition here in Canada, and we’re now left with a fee battle. Prior to this, it was extremely expensive to purchase crypto ETFs. Now, fees are continually coming down. Remember, in the ETF space, competition is nothing but good for retail investors.
Let’s dig into the top Canadian cryptocurrency ETFs available today.
These are the best cryptocurrency ETFs in Canada today
First Bitcoin ETF in the world
Purpose Bitcoin ETF (TSE:BTCC)

Launched in 2021, Purpose Bitcoin ETF (BTCC) was the first Bitcoin ETF globally, offering direct exposure to Bitcoin without the need for private keys or wallets. It directly holds Bitcoin in cold storage with a custodian and closely tracks the spot price of Bitcoin.
Direct Bitcoin exposure through a regulated ETF
iShares Bitcoin Trust ETF (IBIT:NO)

IBIT seeks to reflect the performance of the price of Bitcoin, less expenses. As a physically-backed ETF, it holds actual Bitcoin, offering investors a straightforward method to gain exposure to the cryptocurrency market without the complexities of direct ownership.
Covered-call Bitcoin ETF
Purpose Bitcoin Yield ETF (TSE:BTCY)

BTCY offers exposure to Bitcoin while generating income through a covered-call strategy. This approach trades potential upside for income generation, making it appealing to income-focused investors.
Direct Ethereum exposure
Purpose Ether ETF (TSE:ETHH)

ETHH provides direct exposure to Ethereum, holding ETH in cold storage. It is one of the most popular Ethereum ETFs in Canada, giving investors access to ETH price movements.
Low-cost Ethereum ETF
CI Galaxy Ethereum ETF (TSE:ETHX)

ETHX provides exposure to Ethereum with a lower expense ratio than many competitors. It is designed for cost-conscious investors seeking ETH exposure.
Covered-call Ethereum ETF
Purpose Ether Yield ETF (TSE:ETHY)

ETHY follows a covered-call strategy, generating income while offering Ethereum exposure. It appeals to investors seeking yield instead of pure ETH price appreciation.
Bitcoin & Ethereum dual exposure
Evolve Cryptocurrencies ETF (TSE:ETC)

Evolve Cryptocurrencies ETF (ETC) is a hybrid crypto ETF that provides exposure to both Bitcoin (BTC) and Ethereum (ETH) in a single product. It simplifies crypto investing for those who want diversified exposure to the two largest digital assets without purchasing separate ETFs. The fund dynamically allocates between BTC and ETH based on market conditions, offering a balanced approach to crypto investing.
Should I buy a cryptocurrency ETF or simply the cryptocurrency itself?
Many experienced investors and those learning how to buy stocks looking to add cryptocurrency to their investment strategies often already have an account set up. Whether it be a TFSA, RRSP, or cash account, you can buy crypto ETFs with a single click of a button.
There is certainly a convenience factor when it comes to cryptocurrency ETFs. And another large benefit to purchasing the ETF, especially in a tax-sheltered account, is that your gains will be tax-free.
The same cannot be said if you buy cryptocurrency on a platform like Bitbuy. Although you can claim capital losses if your crypto investment goes south, you will also be forced to pay capital gains if you sell for profit.
Simply put, you need to weigh the pros and cons of purchasing cryptocurrency in a taxable account or taking advantage of the tax opportunity and buying these crypto ETFs in a tax-sheltered account.