With Donald Trump’s renewed focus on advancing digital assets, momentum behind cryptocurrencies is expected to intensify, drawing fresh investor interest into the sector. For Canadians, this backdrop coincides with unique advantages: they enjoy access to both domestic and U.S. bitcoin ETFs, providing an unusually broad range of ways to participate in the asset class.
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Canada has long been a global leader in regulated crypto investing. In February 2021, it became the first country to approve a spot bitcoin ETF with the launch of the Purpose Bitcoin ETF. Soon after, products such as the CI Galaxy Bitcoin ETF and the Fidelity Advantage Bitcoin ETF expanded the landscape. Today, Canadian investors can choose from nearly three dozen crypto-themed ETFs, including multiple funds tracking ethereum, the world’s second-largest digital asset.
Assets under management in Canadian crypto ETFs climbed from C$5.22 billion in September 2024 to C$5.68 billion in October—an 8.8% jump—reflecting renewed confidence. With bitcoin surpassing USD 126,000 and reaching an all-time high of USD 126,198 on October 6, inflows into bitcoin ETFs are widely expected to remain strong. Canadians also benefit from access to over 30 U.S.-listed crypto ETFs through their brokerage accounts, giving them exposure to the fastest-growing ETF category in U.S. history. The rise of U.S. spot ethereum ETFs further expands cross-border opportunities.
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Canadian investors enjoy additional advantages when purchasing domestic bitcoin ETFs. These funds qualify for tax-sheltered accounts such as RRSPs and TFSAs, allowing gains to compound tax-free or tax-deferred depending on the account type. While RRSP contributions offer tax deductions, losses inside the account cannot be claimed. Investors holding U.S.-dollar ETFs should also be mindful of currency risk, as fluctuations in the Canadian dollar can either enhance or erode returns. Currency-hedged options can help mitigate this uncertainty.
Canada’s regulatory regime remains one of the most proactive globally. The Canadian Securities Administrators and FINTRAC oversee crypto trading platforms, ensuring compliance with securities laws and safeguarding custody practices. Proposed updates aim to strengthen rules around custodianship, fund eligibility, and oversight of assets such as stablecoins. These measures are designed to foster investor safety without restricting innovation.
Still, cryptocurrencies remain inherently risky. Bitcoin’s extreme volatility and speculative nature make valuation difficult, warns Dan Kemp of Morningstar. Without intrinsic cash flows, its worth largely depends on investor sentiment. Kemp urges investors to consider how they would value bitcoin if required to hold it long-term—highlighting the importance of disciplined, risk-aware investing despite the sector’s rapidly growing appeal.
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