Investors seeking cryptocurrency exposure have two primary options: purchasing individual coins directly or investing in securities like cryptocurrency ETFs. This guide explores how to buy crypto ETFs in Canada efficiently using online trading platforms.
Why Choose Crypto ETFs Over Direct Crypto Investment?
Investing directly in cryptocurrencies involves navigating digital wallets, private keys, and security protocols. Crypto ETFs simplify this process by handling asset management, allowing you to trade seamlessly via a brokerage account.
Key Benefits:
- Ease of Use: No need for technical knowledge of wallets or private keys.
- Regulated Platforms: Trade through insured brokerage accounts protected by the Canadian Investor Protection Fund (CIPF).
- Portfolio Diversification: Hold crypto ETFs in registered accounts (TFSA, RRSP, etc.).
Top Platforms to Buy Crypto ETFs in Canada
1. Questrade
- Commission-Free ETF Trading: Buy crypto ETFs without fees.
- Low-Cost Trades: Standard equity trades start at $4.95.
- Multi-Currency Support: Fund accounts in USD to avoid FX fees.
👉 Start trading with Questrade today
2. Qtrade
- 100+ Free ETFs: Includes select crypto ETFs.
- Comprehensive Offerings: Stocks, bonds, mutual funds, and options.
- Account Flexibility: Supports RRSPs, TFSAs, RESPs, and more.
3. Wealthsimple Trade
- Zero-Commission Trading: Ideal for cost-conscious investors.
- Fractional Shares: Invest with small amounts.
- Upgrade Options: Trade Plus ($10/month) offers perks like no FX fees.
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Best Crypto ETFs in Canada
Bitcoin ETFs
- Purpose Bitcoin ETF (BTCC)
- CI Galaxy Bitcoin ETF (BTCX)
- Fidelity Advantage Bitcoin ETF (FBTC)
Ethereum ETFs
- CI Galaxy Ethereum ETF (ETHX)
- Purpose Ether ETF (ETHH)
Pros and Cons of Crypto ETFs
| Pros | Cons |
|---|---|
| Hassle-free storage | Limited to Bitcoin/Ethereum |
| CIPF protection | High management fees (~1%) |
| Registered account compatibility | Volatility risks |
How to Buy Crypto ETFs
- Open a brokerage account (e.g., Questrade or Wealthsimple Trade).
- Search for the ETF by ticker (e.g., BTCC for Bitcoin).
- Place a "Buy" order for your desired amount.
FAQs
Q: What’s the safest way to buy crypto ETFs?
A: Use CIPF-protected platforms like Questrade or Qtrade.
Q: Do crypto ETFs pay dividends?
A: Typically, no—they track underlying asset prices.
Q: Can I hold crypto ETFs in a TFSA?
A: Yes, they’re eligible for registered accounts.
Q: Are there leveraged crypto ETFs?
A: Not commonly; most track spot prices.
Q: How do I sell a crypto ETF?
A: Place a "Sell" order via your brokerage platform.
Disclaimer: Cryptocurrency investments carry risks. Diversify your portfolio and consult a financial advisor if needed.