Last week the Toronto Stock Exchange announced the world’s first bitcoin exchange traded fund to the market. Purpose Bitcoin ETF, began trading under the symbols TSX:BTCC.B (CDN dollar denominated) and TSX:BTCC.U (U.S. dollar denominated). These funds can be be held within registered accounts like an RRSP, TFSA, or RESP and the annual management fee is 1 per cent.
Why buy an ETF vs holding bitcoin yourself?
An ETF structure provides you with daily liquidity, you can buy and sell your shares in the ETF at any point throughout the trading week. This structure also ensures that the price of the ETF and the price of the net assets of the ETF are directly connected. Every dollar coming into the fund means it will have to purchase a dollar worth of bitcoin to it’s position.
Investing in this fund has some safer aspects such as the custodian of the fund will have better safeguarding in place from hackers than most individual investors. However, on the downside if the funds price doesn’t follow closely to the price of bitcoin there can be some risks. Bitcoin is here to stay so this is just another vehicle for investors to tap and take advantage of the upside of bitcoin. Regulators had previously resisted approving a Bitcoin ETF, but I think they have realized that allowing investors to participate in an ETF like this provides a safer alternative than some of the other option.
If investing in an ETF isn’t your thing and you would prefer to own bitcoin in your own wallet, here are some Canadian exchange options:
You can earn a $30 bonus and free satoshi’s everyday with Shakepay (buy and sell Bitcoin/Ethereum)
You can earn a $25 bonus with Newton (buy/sell bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Stellar Lumens, Monero, Tether, USD Coin)