Comparing Canadian Bitcoin ETFs
Happy New Year! It’s 2022, and for the eager investors and those on their journeys to Financial Independence, the new year brings with it a new opportunity to top up registered investment accounts!
Approved only in 2020 and 2021, Bitcoin Funds allowing unit holders access to a registered account holding Bitcoin’s price became a reality. These funds come with management expense ratios higher than traditional ETFs, but give unprecedented access to the potential rapid price appreciation of Bitcoin in tax-advantaged accounts like TFSA, RRSP, Roth IRAs. As more funds become available, it’s expected that competition will drive down these fees. Let’s take a look at the various Canadian Bitcoin Exchange Traded funds to compare them.
Bitcoin ETF Similarities
The common element all of these new Bitcoin Exchanges Traded funds share is that they are all traded on the Toronto Stock Exchange TSE. The Securities and Exchange Commission SEC has not yet approved similar funds in America, but Canada isn’t the only one either.
All of the funds have a Management fee of 1% or less, which still puts them ahead of Mutual funds with Management Expense Ratios north of 2%.
They’re mostly all available in Canadian or US Dollars or with a Foreign Exchange Hedge to remove the risk of the Canadian dollar falling in purchasing power against the US Dollar.
Next, let’s see how they differ from one another.
Bitcoin ETF Differences
Another interesting feature is the Ninepoint and Purpose funds include Carbon Offsets to help satisfy those who are concerned about the environmental footprint of Bitcoin.
We can see here the traditional financial companies CI Global and Fidelity have a clear lead in the low Management Fee and institutional experience.
Does Ninepoint’s BITC hit a sweet spot with a slightly lower management fee than Purpose and 3IQ with the added feel-good benefit of some carbon offsets?
Of course, what none of these funds offer is a non-custodian, censorship-resistant form of money. But at least you’ll avoid tax under the current laws.
Comparing Canadian Bitcoin Exchange Traded Funds
| CI Global | 3Iq | Fidelity | Ninepoint | Purpose |
|---|---|---|---|---|
| Symbol BTCX | Symbol BTCQ | Symbol FBTC | Symbol BITC | Symbol BTCC |
| Exchange TSE | Exchange TSE | Exchange TSE | Exchange TSE | Exchange TSE |
| Management Fee 0.4% | Management Fee 1% | Management Fee 0.4% | Management Fee 0.7% | Management Fee 1% |
| Available in USD or FX Hedged. | Available in USD or FX Hedged. | Available in USD or FX Hedged. | A portion of the management fee offsets carbon produced by the bitcoin in this ETF. | Available in USD or FX Hedged, or with Carbon Offset. |
High Impact Tip
Making contributions at the beginning of the year versus the end of the year takes advantage of daily average appreciation.
Want to Learn More
Get the full Bitcoin Mastermind guide with your participation in the FiwithBitcoin 4 Week Bitcoin Mastermind hosted by Timothy Felsky.
Where to invest in Bitcoin ETFs?
Not sure where to buy these funds? You can get them at your self-directed discount brokerage or ask your investment advisor for more information about Bitcoin Exchange Traded Funds.
