Bitcoin ETFs (exchange-traded funds) have become popular among Canadian investors ever since they first hit the market in 2021. ETFs make it much easier for investors to use Bitcoin without any usual challenges people can face when buying the crypto directly. Through that approach, you can simply use traditional brokerage accounts to buy and sell Bitcoin ETFs without using any digital wallets or private keys.
Besides investments, Bitcoin use is growing across many other sectors in Canada. As Michael Graw recently pointed out, Bitcoin is no longer just an asset to hold but also one to spend. More Canadians are now turning to online to the best Bitcoin casinos in Canada and using their Bitcoin for fun in a safe environment. What’s more, a growing number of national retailers in Canada are also accepting Bitcoin payments nowadays, from auto dealer HGregoire to luxury jeweller Birks Group.
First and one of the biggest projects in this rising sector is the Purpose Bitcoin ETF (BTCC). Launched as the world’s first physically-backed Bitcoin ETF, BTCC now holds more than $2.5 billion in assets.
It’s backed by the original Bitcoin stored in cold storage, presenting the safest way for investors to get involved with their favourite crypto assets. The ETF can be paid in Canadian and U.S. dollars, making it much easier for Canadians to buy it in their local currency.
For many Canadians, owning Bitcoin can be annoying sometimes. First, they need to search for secure wallets and then learn about crypto exchanges and how they work. But with ETFs, they can get to Bitcoin as easily as they would with stocks. Plus, Bitcoin ETFs can be included in tax-free accounts such as TFSAs and RRSPs, which makes them even more useful if you’re aiming for long-term investment.
Good laws and regulations have made the biggest impact on the success of BTC ETFs in Canada. The Canadian Securities Administrators (CSA) have set strict rules that make sure these funds operate smoothly and safely.
The competition from the U.S. started to pick up. U.S. Bitcoin ETFs are expected to start a new fee competition, as some Canadian ETFs are already responding. For example, Fidelity reduced its management fees earlier this year to stay competitive. Keeping costs low is becoming crucial as more players enter the market.
Despite the growing competition among the leaders, analysts are very optimistic about the future of Bitcoin ETFs in Canada. Senior analyst Nicholas Sciberras from Collective Shift has predicted that the global market for Bitcoin ETFs could hit the $300 billion milestone, with Canada continuing to play a leading role.
As Bitcoin is becoming even more mainstream each day, ETFs are expected to stay a safe way for investors to access their assets without dealing with unnecessary troubles often seen in direct ownership.
