Best Crypto ETFs in Canada in 2024

·

Cryptocurrency exchange-traded funds (ETFs) have transformed the way Canadian investors access digital assets. Unlike buying and storing crypto directly, crypto ETFs offer a secure, regulated, and tax-efficient way to gain exposure to Bitcoin, Ethereum, and blockchain-related companies—all through traditional brokerage accounts. As of 2024, Canada remains a global leader in crypto ETF innovation, offering a diverse range of investment options on the Toronto Stock Exchange (TSX).

This guide explores the top-performing crypto ETFs available to Canadian investors, covering key factors such as management fees, fund size, performance history, and portfolio diversification benefits.

Understanding Crypto ETFs

An exchange-traded fund (ETF) is an investment vehicle that holds a basket of assets—such as stocks, bonds, or commodities—and trades on a stock exchange like a single stock. While traditional ETFs often track market indexes like the S&P 500, crypto ETFs are designed to mirror the price movements of digital currencies like Bitcoin (BTC) and Ethereum (ETH).

Canada made history in 2021 by launching the world’s first Bitcoin ETF, paving the way for institutional and retail investors to enter the crypto market without managing wallets, private keys, or exchanges.

👉 Discover how crypto ETFs simplify digital asset investing for Canadians.

Why Invest in Crypto ETFs?

Crypto ETFs offer several advantages over direct cryptocurrency ownership:

These features make crypto ETFs ideal for investors seeking exposure to blockchain technology while minimizing operational complexity and security risks.

Top Bitcoin ETFs in Canada

Purpose Bitcoin ETF (BTCC)

As the world’s first Bitcoin ETF, BTCC set the benchmark for the industry. With over $1.4 billion in assets, it remains the largest crypto ETF globally. While its management fee is higher than some competitors, its scale and liquidity provide stability and investor confidence.

CI Galaxy Bitcoin ETF (BTCX)

BTCX stands out for its low expense ratio—just 0.4%—making it one of the most cost-effective ways to invest in Bitcoin. Despite a modest drop in its first year, BTCX has grown steadily and is ideal for long-term investors focused on minimizing fees.

Evolve Bitcoin ETF (EBIT)

EBIT offers a balanced mix of affordability and performance. Its lower fee compared to BTCC makes it attractive for investors looking to reduce costs without sacrificing reliability.

Fidelity Advantage Bitcoin ETF (FBTC)

FBTC matches BTCX’s ultra-low fee structure, making it a strong contender for cost-conscious investors. Though smaller in size, it benefits from Fidelity’s strong reputation in asset management.

3iQ CoinShares Bitcoin ETF (BTCQ)

BTCQ is one of the largest actively managed Bitcoin funds in Canada. While it carries a higher fee, its robust infrastructure and reporting standards appeal to institutional investors.

Leading Ethereum ETFs in Canada

Purpose Ether ETF (ETHH)

As the world’s first Ethereum ETF, ETHH provides direct exposure to the second-largest cryptocurrency. Its large asset base and regulatory approval make it a top choice for Ethereum-focused portfolios.

CI Galaxy Ethereum ETF (ETHX)

ETHX combines low fees with significant scale, making it arguably the best-value Ethereum ETF in Canada. It's particularly appealing for investors prioritizing cost efficiency.

Evolve Ether ETF (ETHR)

ETHR offers slightly reduced fees compared to higher-cost alternatives and is suitable for investors seeking diversified exposure within a broader portfolio.

3iQ CoinShares Ether ETF (ETHQ)

Despite a challenging first-year performance due to market conditions, ETHQ remains a major player thanks to its size and established presence.

Multi-Cryptocurrency & Blockchain ETFs

CI Galaxy Multi Cryptocurrency ETF (CBCX)

CBCX allows investors to diversify across both BTC and ETH in a single fund. With a modest fee and balanced allocation, it’s ideal for those who believe in both leading cryptocurrencies.

Purpose Crypto Opportunities ETF

This hybrid fund goes beyond pure crypto exposure by investing in blockchain-related equities and derivatives. It’s perfect for investors wanting broad exposure to the digital asset ecosystem.

👉 Explore hybrid crypto investment strategies that combine digital assets with tech equities.

Key Considerations Before Investing

✅ Management Expense Ratio (MER)

The MER includes management fees and operating expenses. Lower MERs mean more of your returns stay in your pocket—especially important in volatile markets where gains can be slim.

⚠️ Volatility & Risk

Cryptocurrencies are inherently volatile. Prices fluctuate constantly, and unlike dividend-paying stocks, most crypto ETFs don’t generate income. Investors should only allocate funds they can afford to hold through market swings.

💱 Hedged vs. Unhedged ETFs

Canadian investors can choose between CAD-hedged and unhedged versions of many crypto ETFs. Unhedged funds expose you to currency fluctuations between USD and CAD—potentially increasing returns during favorable exchange rates but adding risk during downturns.

Pros and Cons of Crypto ETFs in Canada

✅ Advantages

❌ Limitations

Are There Blockchain ETFs?

Yes—while not direct crypto investments, blockchain ETFs focus on companies involved in blockchain technology development. One notable example is the CI Galaxy Blockchain ETF, which tracks firms engaged in blockchain innovation across sectors like finance, supply chain, and cybersecurity.

Another option is investing in publicly traded blockchain companies such as Block Inc. (formerly Square), which integrates Bitcoin into its financial ecosystem.

Frequently Asked Questions (FAQ)

What is the best Bitcoin ETF in Canada?
The CI Galaxy Bitcoin ETF (BTCX) is widely regarded as the best due to its low 0.4% management fee and substantial $323 million in assets under management.

Which Ethereum ETF has the lowest fees?
The CI Galaxy Ethereum ETF (ETHX) offers the lowest expense ratio at just 0.4%, making it the most cost-efficient way to invest in ETH.

Can I hold crypto ETFs in my TFSA?
Yes—unlike direct crypto purchases on exchanges, Canadian crypto ETFs can be held in tax-free savings accounts (TFSAs) and registered retirement plans (RRSPs).

Are there any altcoin ETFs available in Canada?
No—currently, only Bitcoin and Ethereum have approved ETFs in Canada. There are no Dogecoin, Cardano, or other altcoin-based ETFs available.

Do crypto ETFs pay dividends?
Most do not. Since these funds track asset prices rather than generate income, they typically don’t pay regular distributions.

Is investing in a crypto ETF safer than buying crypto directly?
Yes—in many ways. ETFs eliminate risks associated with wallet security, exchange hacks, and lost private keys, offering a more regulated and user-friendly experience.

👉 Compare top crypto ETFs and find the right fit for your investment goals today.