The Best Crypto ETFs in Canada: A Comprehensive Guide

Posted On January 31, 2025

With the recent buzz around the approval of spot Ethereum ETFs in the US and their impressive performance, it’s a great time to explore some of the best crypto ETFs available in Canada. Canada has been ahead of the curve, approving spot Bitcoin and Ethereum ETFs well before the US, giving investors a head start in the crypto market.

In this article, we’ll dive into the top crypto ETFs in Canada, explain what makes them stand out, and cover everything you need to know to make informed investment decisions. Let’s jump in!

What are Crypto ETFs?

ETFs, or exchange-traded funds, are like baskets of different investments, such as stocks or bonds, that you can buy and sell on a stock exchange. They help you spread your risk because you’re investing in a mix of assets instead of just one.

Crypto ETFs work the same way but focus on cryptocurrencies like Bitcoin or Ethereum. Instead of buying these digital coins directly, you invest in a fund that tracks their performance. This means you can enjoy the potential gains from cryptocurrencies without the hassle of managing them yourself.

For traditional investors, crypto ETFs are a great way to get into the crypto market without diving into the deep end. They offer a simpler, more familiar way to invest in digital currencies, combining the excitement of crypto with the ease of traditional ETFs. Whether you’re a seasoned investor or just curious about crypto, crypto ETFs provide a straightforward path to explore this new investment frontier.

Spot Bitcoin ETFs Vs Other Bitcoin ETFs

When discussing crypto ETFs, it’s good to know the difference between spot ETFs and other types.

Spot Bitcoin ETFs directly invest in actual Bitcoin. When you buy shares in a spot Bitcoin ETF, you’re buying a piece of Bitcoin held by the fund. This means the ETF closely follows Bitcoin’s price, giving you a clear and straightforward way to invest in the cryptocurrency.

On the other hand, futures-based Bitcoin ETFs invest in Bitcoin futures contracts instead of the actual Bitcoin. These contracts predict what Bitcoin’s price will be in the future, letting you benefit from its price movements without owning the coin itself.

Spot Bitcoin ETFs can be trickier to get approved by regulators, so many companies choose futures-based ETFs instead. Futures ETFs can be easier to manage but might not track Bitcoin’s price as closely.

If you want direct exposure to Bitcoin, go for a spot ETF. If you’re okay with more indirect exposure, futures-based ETFs can still be a good option.

How to Choose the Best Crypto ETFs in Canada?

When picking the best crypto ETF to invest in, keep these things in mind:

Underlying Assets: Check which cryptocurrencies the ETF includes. Some focus only on Bitcoin, while others might have a mix of different digital assets. Also, consider whether it is a spot ETF or a futures ETF.

Management Fees: Look at the expense ratio or management fees. Lower fees can mean higher returns for you over time. Most crypto ETFs in Canada have fees between 0.5% and 1%.

Fund Size: Bigger funds usually offer better liquidity and stability. Look at the total assets under management (AUM) and make sure the ETF has enough trading volume, so you can buy and sell shares easily without big price changes.

Provider Reputation: Consider the reputation and history of the company offering the ETF. Established providers often offer more reliable and secure options. Check the ETF’s past performance, but keep in mind, it doesn’t guarantee future results.

Investment Strategy: Make sure the ETF’s strategy matches your investment goals. Some focus on price growth, while others aim for income through methods like staking or lending.

The Best Crypto ETFs in Canada are – 

1. Purpose Bitcoin ETF (BTCC) & Purpose Ether ETF (ETHH)

The Purpose Bitcoin ETF was the first-ever Bitcoin ETF backed by actual Bitcoin, launched on February 18, 2021. Not long after, the Purpose Ether ETF came out. Both of these spot ETFs are listed on the Toronto Stock Exchange (TSX) and you can include them in your TFSA or RRSP accounts.

They have a maximum management fee of 1.50%, but if the fees drop below that, the savings are passed on to you. They also keep your investments safe by storing all assets in cold storage with Gemini Trust Company and Coinbase Custody Trust Company. You don’t need a lot of money to start; you can buy just one share.

In terms of performance, the Purpose Bitcoin ETF has seen a 91.62% return over the last year and 3.57% since it started. The Purpose Ether ETF has a 69.72% return over the last year and 9.91% since its launch. So, while the Bitcoin ETF has higher short-term gains, the Ether ETF seems to be more stable and profitable in the long run.

2. Evolve Bitcoin ETF (EBIT) & Evolve Ethereum ETF (ETHR)

The Evolve Bitcoin ETF (EBIT) started on February 17, 2021, and the Evolve Ethereum ETF (ETHR) has been around since April 21, 2019. Both are spot ETFs listed on the Toronto Stock Exchange (TSX) and can be part of your TFSA or RRSP accounts.

These ETFs keep all their assets safe in cold storage with Cidel Trust Company and Gemini Trust Company. The management fee for both is 0.75%, making them a budget-friendly option.

Performance-wise, the Evolve Bitcoin ETF had an amazing year with a 131.37% return and 7.77% since it began. The Evolve Ethereum ETF saw an 81.53% return in the past year and 14.72% since it launched.

3. CI Galaxy Bitcoin ETF (BTCX) & CI Galaxy Ethereum ETF (ETHX) 

The CI Galaxy Bitcoin ETF launched on March 5, 2021, while the CI Galaxy Ethereum ETF has been around since April 16, 2019. Both of these ETFs can be included in your TFSA or RRSP accounts.

They store all their assets in cold storage, keeping your investments safe. The management fee for both ETFs is a low 0.40%, making them a cost-effective option.

In terms of performance, the CI Galaxy Bitcoin ETF has seen a return of 103% in the last year and 6.0% since inception. The CI Galaxy Ethereum ETF has had a 73.9% return over the past year and 13.8% since it started. This indicates that while the Bitcoin ETF has strong short-term gains, the Ethereum ETF offers solid long-term performance.

4. 3iQ CoinShares Bitcoin ETF (BTCQ) & 3iQ CoinShares Ether Staking ETF (ETHQ)

The 3iQ Bitcoin ETF started on March 31, 2021, while the 3iQ Ether Staking ETF launched on April 22, 2021. Both are listed on the Toronto Stock Exchange (TSX) and can be included in your TFSA or RRSP accounts.

These ETFs keep your investments safe in cold storage with Tetra Trust Company and Coinbase Custody Trust Company. The management fees are 1.75% for the Bitcoin ETF and 1.87% for the Ether Staking ETF.

The 3iQ Ether Staking ETF offers the growth potential of Ethereum plus extra earnings through staking. 

Over the past year, the 3iQ Bitcoin ETF returned 95%, but it’s down 3% since its launch. On the other hand, the 3iQ Ether Staking ETF returned 74% in the last year and has grown 29% since it started. This shows that Ethereum, especially with staking, has been more stable and less volatile than Bitcoin in the long run.

5. Horizons BetaPro Inverse Bitcoin ETF (BITI) 

The Horizons BetaPro Inverse Bitcoin ETF launched on April 14, 2021. It lets you potentially profit when Bitcoin prices fall, without needing a margin account. This ETF bets against Bitcoin’s price by investing in futures contracts, tracking the Horizons Bitcoin Front Month Rolling Futures Index (Excess Return).

If you think Bitcoin prices will drop, this ETF is a way to make money from that. You can hold it in your TFSA or RRSP accounts. The management fee is 1.90%.

In the past year, the Horizons BetaPro Inverse Bitcoin ETF had a return of -53.58% and -27.72% since it started. This ETF is for investors who are okay with high risk and looking to try something different.

6. Fidelity Advantage Bitcoin ETF

The Fidelity Advantage Bitcoin ETF started on November 30, 2021, and is a spot Bitcoin ETF. The management fee is 0.95%.

They store 98% of their assets in cold storage with Fidelity’s in-house services. If you prefer ETFs with well-known custodians, this might be a concern.

Over the past year, the Fidelity Advantage Bitcoin ETF returned 101.86%, and it’s up 3.37% since it launched. This ETF offers good returns, but keep the storage method in mind when deciding if it’s right for you.

7. Purpose Bitcoin Yield ETF

The Purpose Bitcoin Yield ETF started on December 2, 2021. It makes money by selling covered call options on Bitcoin or Ether and collecting the premiums. Basically, a covered call is when the seller owns the underlying asset and sells the right for someone else to buy it at a set price, usually a bit higher than the current price.

This means you can benefit from both the price going up and earning income from the options premiums. The management fee is 1.28%. In the past year, the Bitcoin Yield ETF had a return of 69.57%, but it’s down 7.56% since it launched. 

FAQ

Does Canada have crypto ETFs?

Yes, Canada has crypto ETFs. In fact, Canada was the first country in the world to approve a Bitcoin spot ETF by approving the Purpose Bitcoin ETF. 

What are the Tax Implications of Crypto ETFs in Canada?

When investing in ETFs in Canada, it’s essential to understand the tax implications. Generally, ETFs are taxed like other investments. 

When you sell your ETF shares for a profit, you trigger a capital gain. In Canada, only 50% of capital gains are taxable, meaning you’ll add half of your gains to your taxable income for the year. If you sell your ETF shares at a loss, you can use those capital losses to offset any capital gains, reducing your taxable income.

Crypto ETFs follow the same tax rules as traditional ETFs because you’re not directly holding the cryptocurrency—the fund is. This means you won’t face the specific crypto