Bitcoin ETFs offer a seamless way to invest in the world's largest cryptocurrency without needing a crypto account or exchange. In Canada, these ETFs can be held in tax-advantaged accounts like Tax-Free Savings Accounts (TFSAs) or Registered Retirement Savings Plans (RRSPs), allowing you to either avoid taxes on profits (TFSA) or defer taxes until withdrawal (RRSP).
👉 Explore top-performing Canadian stocks for additional high-growth opportunities.
Top Bitcoin ETFs in Canada
Here’s a ranked list of the best Bitcoin ETFs available to Canadian investors, based on fees, performance, and assets under management. Each ETF holds Bitcoin directly, with its price reflecting the underlying cryptocurrency's value.
Key Factors to Consider:
- Management Fee (MER): Lower fees mean higher net returns.
- Liquidity: Higher trading volumes ensure easier entry/exit.
- Cold Storage: All listed ETFs use offline storage for enhanced security.
Ranked ETFs (as of June 2025):
Fidelity Advantage Bitcoin ETF (FBTC.TO, FBTC.U.TO)
- MER: 0.43%
- 1-Year Return: 59.48%
- AUM: $1.216 billion
CI Galaxy Bitcoin ETF (BTCX.B.TO, BTCX.U.TO)
- MER: 0.69%
- 1-Year Return: 57.63%
- AUM: $1.3 billion
Purpose Bitcoin ETF (BTCC.TO, BTCC.B.TO, BTCC.U.TO)
- MER: 1.31%
- 1-Year Return: 56.01%
- AUM: $3.06 billion
Evolve Bitcoin ETF (EBIT.TO, EBIT.U.TO)
- MER: 1.53%
- 1-Year Return: 55.88%
Purpose Bitcoin Yield ETF (BTCY.TO, BTCY.B.TO)
- MER: 1.42%
- Yield: 10.93% (volatile)
Detailed ETF Breakdown
1. Fidelity Advantage Bitcoin ETF (FBTC.TO)
- Why Choose It? Lowest fees and strong long-term performance.
- Drawback: Lower daily trading volume (~71.5K shares).
- Best For: Buy-and-hold investors.
2. CI Galaxy Bitcoin ETF (BTCX.B.TO)
- Why Choose It? High liquidity (226K avg. volume) and competitive returns.
- Best For: Active traders.
3. Purpose Bitcoin ETF (BTCC.B.TO)
- Unique Feature: Currency-hedged option (BTCC.TO).
- Best For: Investors seeking USD/CAD flexibility.
👉 Discover how to optimize your ETF investments with low-fee strategies.
FAQs
Q: Can I hold Bitcoin ETFs in a TFSA or RRSP?
A: Yes! These ETFs are eligible for tax-advantaged accounts. TFSAs exempt gains from taxes, while RRSPs defer taxes until withdrawal.
Q: How do Bitcoin ETFs differ from owning Bitcoin directly?
A: ETFs simplify ownership (no wallets/exchanges) but charge fees. Direct ownership offers utility (e.g., payments) but requires self-custody.
Q: What’s the biggest risk with Bitcoin ETFs?
A: Bitcoin’s volatility—expect 50%+ drops periodically. Also, regulatory changes could impact value.
Portfolio Allocation Tips
- Balanced Approach: Allocate a small portion (5–15%) to Bitcoin ETFs within a diversified portfolio of stocks (e.g., S&P 500 ETFs) and bonds.
- Volatility Awareness: Bitcoin’s historic rallies (e.g., 624% peak in 2025) come with steep declines (e.g., 78% in 2022).
Risks to Consider
- Regulatory Uncertainty: Crypto laws are evolving globally.
- Custodial Risks: ETFs mitigate hacking risks via cold storage, but systemic failures are rare.
By Cory Mitchell, CMT
Disclaimer: Not investment advice. Trading involves risk, including potential loss of capital.