Canada has gradually become an attractive destination for investors looking to move into the cryptocurrency space. It offers a variety of choices when it comes to cryptocurrency and investment vehicles. There are now several Canadian cryptocurrency ETFs, which have become an attractive option for those who want to get into the cryptocurrency market without taking on the added risk of holding actual digital assets.
The technology behind cryptocurrencies has been gaining traction since their advent in the early 2000s. Despite their complexity, the cryptocurrencies have gained in popularity due to their ability to provide a secure digital payment option to users with low transaction fees. As a result, investors have taken to investing and trading cryptocurrencies, a volatile asset class, to gain exposure to the potential returns of the sector.
Cryptocurrency ETFs offer a simplified way for investors to gain exposure to the sector without taking on the risk of owning cryptocurrencies directly. ETFs are investment vehicles that track the performance of an underlying index of financial instruments. In this case, the ETFs track the performance of a basket of cryptocurrencies. These ETFs allow investors to take advantage of the price swings in the crypto market without having to purchase digital assets.
Here are the 11 Canadian cryptocurrency ETFs currently available to investors.
1. Purpose Bitcoin ETF (BTCC): One of the first ETFs to enter the Canadian market.
2. CI Galaxy Bitcoin ETF (BTCX): A fund that invests in bitcoin only.
3. Evolve Bitcoin ETF (EBIT): An ETF that includes both bitcoin and Etherium in its portfolio.
4. 3iQ Bitcoin Trust (QBTC): Invest in bitcoin with a minimum investment of $25,000.
5. Purpose Ethereum ETF (ETHX): Invest in Etherium with a minimum investment of $25,000.
6. Evolve Etherium ETF (ETHE): An ETF that allows investment in Etherium in a low-cost ETF.
7. Ark Innovation ETF (ARKQ): Offers exposure to Bitcoin and a basket of other digital assets.
8. Reality Shares NASDAQ Crypto EFT (QCAD): Includes a basket of digital assets, including Bitcoin, Etherium, Ripple, and Litecoin.
9. SPDR FANG+ Cryptocurrency EFT (FANG+): Includes a basket of ten digital assets, including Bitcoin, Etherium, Ripple, and Litecoin.
10. First Trust Indxx Innovative Transaction & Process ETF (LEGR): Provides a vehicle to access the leading digital assets based on their long-term utility and progress in blockchain technologies.
11. Evolve Blockchain ETF (HBLK): A low-cost ETF that includes companies that are actively engaged in the development, implementation and use of blockchain technology.
These ETFs provide investors with a low-cost and secure way to gain exposure to cryptocurrency without having to manage their own cryptocurrency wallets. By investing in an ETF, investors can benefit from the potential appreciation of the cryptocurrency without the added risk of trading it on their own. Therefore, these ETFs are an attractive option for investors who want to gain exposure to the cryptocurrency market without taking on added risk.