How to Purchase a Bitcoin Spot ETF in Canada
For those Canadian investors out there looking to dip their toes into the world of cryptocurrencies, spot bitcoin exchange-traded funds can be a great option. These ETFs have been making a comeback recently, drawing in strong interest and investments in 2024. While they still make up a small part of the overall market, the increasing popularity of Canada-listed bitcoin and other crypto ETFs shows that people are warming up to the idea.
This resurgence can largely be attributed to the impressive surge in bitcoin’s price, especially after the cryptocurrency-friendly Donald Trump won the US presidential election. Bitcoin even came close to hitting the monumental milestone of USD 100,000 recently, which made spot bitcoin ETFs all the more appealing to investors.
The momentum for bitcoin really started picking up at the beginning of the year when the US Securities & Exchange Commission gave the green light for the sale of US-based spot bitcoin ETFs. This decision got Canadians excited, even though Canada had a head start of three years in the bitcoin ETF game.
Canadians have been embracing crypto ETFs, including bitcoin spot ETFs, for quite some time now. The first one, Purpose Bitcoin ETF, was approved in Canada back in February 2021, paving the way for others like CI Galaxy Bitcoin ETF and Fidelity Advantage Bitcoin ETF. Today, Canadian investors have close to 30 crypto-themed ETFs to choose from, including those that track ethereum, the second-largest cryptocurrency.
The assets under management for Canadian cryptocurrency ETFs saw a significant increase from C$5.22 billion in September 2024 to C$5.68 billion in October, marking an 8.8% growth fueled by growing investor confidence in digital currencies. With bitcoin’s price nearing USD 100,000 and continually reaching new highs, it’s expected that bitcoin ETFs will continue to attract more investments. Since the start of the year, bitcoin has experienced gains of over 125% and has surged by about 44% since the US presidential election. The future looks bright for those diving into the world of crypto through ETFs!
