Bitcoin ETFs in Canada: Best of Breed

Bitcoin ETFs are here. But should you invest in them?

If you’re not tech savvy, then investing in Bitcoin can be scary. To be sure, having to worry about digital wallets and public keys is not ideal for most of us. That said, a Bitcoin Exchange Traded Fund (ETF) maybe a good idea you.

Cryptocurrencies are currently center stage, with Bitcoin as the heavyweight champion. But, many other cryptocurrencies exist and compete for investor attention, like Ethereum.

Recently Coinbase, the worlds largest crypto exchange, listed its stock directly on the NASDAQ. Now, cryptos are a new asset class and can be volatile. However, cryptos are hear to stay and compete with Central Bank controlled fiat (backed by debt) currencies.

Top 3 Bitcoin ETFs Traded on the TSX

Purpose Bitcoin ETF – BTCC – BTCC.b – BTCC.u – 1% annual management fee
Evolve Bitcoin ETF – EBIT – EBIT.u – 0.75% annual management fee
CI Galaxy Bintcoin ETF – BTCX.b – BTCX.u – 0.4% annual management fee

Bitcoin ETFs all charge a management fee and brokerage trading fees. So, if you’re looking to keep fees low, this probably is not your best option.

Another key point to consider is the decentralized system of transactions. This is the core blockchain technology behind Bitcoin. If you own crypto in an ETF you lose access to this technology. That is to say, you cannot complete peer-to-peer transactions. And when you sell your ETF you’re left with dreaded fiat currency.

How To Buy Cryptos Directly in Canada

CoinSmart
NDAX
Bitbuy
Wealthsimple Crypto

I prefer Wealthsimple Crypto due to their awesome user interface, or GUI. That said, their 1.5% trading fee is expensive and CDIC insurance is not available. Again, like with ETFs, at Wealthsimple you cannot transfer crypto’s to your private digital wallet. So, in the end you’re still stuck with fiat currency no matter what.

Conclusion

Why was Bitcoin and blockchain technology created in the first place?

In the wake of the 2008 housing and financial crisis, the US treasury and Federal Reserve, coordinated the biggest bank bailout in history. At the flick of a switch the Federal Reserve created almost $1 trillion US dollars and gave it to the banks. Banks elected to increase executive salaries and bonuses. Mortgage and securities fraud was everywhere and nobody went to jail.

This environment of Moral Hazard (taking someone’s money and not being responsible for it) lead to the creation of a decentralized monetary system called Bitcoin.

In the end, both the US dollar and Bitcoin are a medium of exchange. We use them to conduct transactions in a timely fashion. However, the COVID-19 pandemic led to debt creation that dwarfs the 2008 financial crisis. For this reason, Bitcoin will continue to rise in value relative to the US dollar.

DISCLAIMER: Content provided in this article is for informational and entertainment purposes only. This article is not legal and/or investment advice. This article should not replace professional investment advice based upon your particular situation. Duties are not assumed, intended or created by this communication.