Canada has long been a pioneer in the world of cryptocurrency investing, especially when it comes to crypto exchange-traded funds (ETFs). As one of the first countries to approve spot Bitcoin and Ethereum ETFs—well ahead of global markets like the U.S.—Canada offers investors a secure, regulated, and accessible way to gain exposure to digital assets.
With growing interest in spot Ethereum ETFs following recent U.S. approvals and strong market performance, now is an ideal time to explore the top crypto ETFs available to Canadian investors. In this guide, we’ll walk you through the best options on the market, explain how they work, and help you make smarter investment decisions—all without stepping into the complexities of direct crypto ownership.
What Are Crypto ETFs?
Crypto ETFs (exchange-traded funds) are investment vehicles that trade on stock exchanges like traditional stocks but track the price of underlying cryptocurrencies such as Bitcoin or Ethereum. Instead of buying and storing digital coins yourself, you invest in a professionally managed fund that holds the actual assets—or derivatives linked to them.
These ETFs allow investors to gain exposure to crypto markets through familiar brokerage accounts, including tax-advantaged accounts like TFSAs and RRSPs. This makes them particularly appealing to traditional investors who want the growth potential of crypto without dealing with wallets, private keys, or exchange risks.
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Spot Bitcoin ETFs vs. Futures-Based ETFs
Understanding the difference between spot and futures-based crypto ETFs is crucial for making informed choices.
- Spot ETFs hold the actual cryptocurrency. For example, a spot Bitcoin ETF owns real Bitcoin stored securely in cold storage. The fund’s value closely mirrors the live market price of the asset.
- Futures-based ETFs, on the other hand, don’t own the underlying coin. Instead, they use futures contracts—agreements to buy or sell Bitcoin at a future date—to track price movements. While easier to regulate, these can diverge from actual prices over time due to contract rollovers and market sentiment.
For direct exposure and better price correlation, spot ETFs are generally preferred by long-term investors.
How to Choose the Best Crypto ETF in Canada
When evaluating which crypto ETF to invest in, consider these key factors:
Underlying Assets
Determine whether the ETF focuses on Bitcoin, Ethereum, or a diversified basket. Also, confirm if it’s a spot or futures product.
Management Fees (Expense Ratio)
Lower fees mean more of your returns stay in your pocket. Most Canadian crypto ETFs charge between 0.40% and 1.90%, so compare carefully.
Fund Size & Liquidity
Larger funds with higher assets under management (AUM) typically offer tighter bid-ask spreads and smoother trading.
Custodial Security
Check where and how the fund stores its crypto. Reputable custodians like Gemini, Coinbase Custody, or Fidelity add an extra layer of trust.
Investment Strategy
Some ETFs focus purely on capital appreciation, while others generate income through staking or options strategies like covered calls.
Top Crypto ETFs in Canada for 2025
1. Purpose Bitcoin ETF (BTCC) & Purpose Ether ETF (ETHH)
Launched on February 18, 2021, the Purpose Bitcoin ETF (BTCC) was the world’s first physically backed Bitcoin ETF. Shortly after, the Purpose Ether ETF (ETHH) followed, offering similar exposure to Ethereum.
Both are spot ETFs listed on the TSX and eligible for TFSA and RRSP accounts. They charge a maximum management fee of 1.50%, though fee reductions are passed on to investors. Assets are held in cold storage by Gemini Trust Company and Coinbase Custody.
Performance highlights:
- BTCC: +91.62% return over the past year; +3.57% since inception
- ETHH: +69.72% over one year; +9.91% since launch
While BTCC shows stronger short-term gains, ETHH demonstrates steadier long-term growth.
2. Evolve Bitcoin ETF (EBIT) & Evolve Ethereum ETF (ETHR)
The Evolve Bitcoin ETF (EBIT) launched on February 17, 2021, while ETHR has been active since April 2019—making it one of the longest-running Ethereum funds.
Both are spot ETFs with low management fees of just 0.75%. Assets are secured via Cidel Trust Company and Gemini Trust. These funds are also TFSA- and RRSP-friendly.
Performance:
- EBIT: +131.37% over one year; +7.77% since inception
- ETHR: +81.53% in one year; +14.72% since launch
Evolve stands out for high performance and affordability.
3. CI Galaxy Bitcoin ETF (BTCX) & CI Galaxy Ethereum ETF (ETHX)
Launched in March 2021 (BTCX) and April 2019 (ETHX), both are spot ETFs managed by CI Financial with ultra-low fees at 0.40%—among the lowest in Canada.
Crypto holdings are stored in cold storage with trusted custodians. Both are eligible for registered accounts.
Performance:
- BTCX: +103% over one year; +6.0% since inception
- ETHX: +73.9% over one year; +13.8% since launch
These funds offer excellent value for cost-conscious investors seeking reliable exposure.
4. 3iQ CoinShares Bitcoin ETF (BTCQ) & Ether Staking ETF (ETHQ)
The BTCQ, launched March 31, 2021, and ETHQ, launched April 22, 2021, are both TSX-listed spot ETFs available in TFSAs and RSPs.
They use Tetra Trust and Coinbase Custody for secure cold storage. Fees are higher: 1.75% for BTCQ and 1.87% for ETHQ.
What sets ETHQ apart is its staking strategy, which generates additional yield beyond price appreciation.
Performance:
- BTCQ: +95% over one year; -3% since inception
- ETHQ: +74% over one year; +29% since inception
ETHQ’s long-term outperformance underscores Ethereum’s growing utility and income-generating potential.
5. Horizons BetaPro Inverse Bitcoin ETF (BITI)
For bearish investors, BITI offers inverse exposure to Bitcoin via futures contracts. If Bitcoin’s price drops, BITI rises in value—ideal for hedging or speculative plays.
Management fee: 1.90%. Available in TFSA/RRSP accounts.
Past performance:
- -53.58% over one year
- -27.72% since inception
This high-risk product suits experienced traders comfortable with volatility.
6. Fidelity Advantage Bitcoin ETF (FBTC)
Launched November 30, 2021, this spot Bitcoin ETF charges a competitive 0.95% fee. Fidelity stores 98% of assets in-house using its own custody solution—a point some may view as less decentralized than third-party custodians.
Performance:
- +101.86% over one year
- +3.37% since inception
Strong returns with a trusted financial name behind it.
7. Purpose Bitcoin Yield ETF
Launched December 2, 2021, this innovative fund generates income by selling covered call options on Bitcoin or Ether holdings.
With a management fee of 1.28%, it targets investors looking for yield alongside moderate growth.
Performance:
- +69.57% over one year
- -7.56% since inception
Best suited for those comfortable with options-based strategies during bullish or sideways markets.
Frequently Asked Questions (FAQ)
Does Canada have crypto ETFs?
Yes, Canada was the first country to approve a spot Bitcoin ETF—the Purpose Bitcoin ETF launched in February 2021—and now offers multiple regulated crypto ETFs covering Bitcoin, Ethereum, staking yields, and even inverse strategies.
What are the tax implications of crypto ETFs in Canada?
Crypto ETFs are treated like any other equity investment for tax purposes. When you sell shares at a profit, you incur a capital gain—only 50% of which is taxable. Distributions (e.g., from staking or options premiums) may be taxed as income. Since you don’t directly hold crypto, you avoid complex crypto-specific tracking rules.
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Which is the best crypto ETF to buy in Canada?
There's no single "best" option—it depends on your goals:
- For low fees: CI Galaxy Bitcoin/ETH ETFs (0.40%)
- For high returns: Evolve Bitcoin ETF
- For staking yield: 3iQ Ether Staking ETF
- For income: Purpose Bitcoin Yield ETF
- For shorting Bitcoin: Horizons BITI
Can I hold crypto ETFs in my TFSA or RRSP?
Yes—most major Canadian crypto ETFs are eligible for inclusion in TFSAs, RRSPs, and other registered accounts, making them ideal for tax-efficient investing.
Do crypto ETFs pay dividends?
Not traditional dividends, but some—like staking or yield-focused ETFs—distribute income from activities such as staking rewards or options premiums. These are typically reported as interest or other income on your tax slip.
Are spot crypto ETFs safer than buying crypto directly?
Generally yes. Spot crypto ETFs offer regulated exposure with professional custody solutions, eliminating risks associated with self-custody (e.g., lost keys, exchange hacks). They also simplify compliance and reporting.
Whether you're new to digital assets or expanding your portfolio, Canadian crypto ETFs offer a safe, simple, and tax-efficient entry point into the blockchain revolution.
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