A Complete Cryptocurrency Purchase, Exchange, Wallet, and ETF Guide

With the intense increase of interest in Cryptocurrencies, investors have been looking for easier methods to understand and invest in this complicated technical asset. Fortunately, we are being given more and more options to make our cryptocurrency purchase easier.

My goal is to simplify the complicated process of buying and storing Cryptocurrencies focusing on Bitcoin and Ethereum. However, I will briefly cover the ways to purchase Altcoin currencies like Dogecoin, Cardano, or SafeMoon.

In addition, as you might noticed my passion about ETFs from my previous posts like Best REIT or Best Technology ETFs in Canada, I will provide a complete ETF comparison table of the currently approved Cryptocurrency (Bitcoin and Ethereum) ETFs in Canada.

Cryptocurrency Purchase Guide in Canada

Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy.

Michael Saylor

Cryptocurrency index is very dynamic but based on the average index, more than 95% of the market is invested by either Bitcoin or Ethereum. The other 5% is mostly distributed among Litecoin, Chainlink, Bitcoin Cash, and Stellar.

Please note that this is not an introductory to Cryptocurrency, Fiat Currency, or Blockchain. My assumption is that you already know about digital currencies and interested in owning them.

Cryptocurrency Purchase (How to Buy Crypto) Methods in Canada

  1. Cryptocurrency Exchanges (Custodial or Self-Custody Wallet)
  2. Cryptocurrency (Bitcoin or Ethereum) ETFs (Custodial Wallet)
  3. Cryptocurrency Account Wealthsimple Crypto (Custodial Wallet)
Key Difference Between Buying Bitcoin Directly Closed Edn Funds and ETFs

Each method has its own advantages and disadvantages. However, the main difference is how the real crypto currency is held and who has full control over the purchased coin. In case of the non-custodial exchange, you have the private key and are the full owner who hold and own the crypto directly in your wallet. In theory, this means no regulations (banks or governments) can take away your coin.

On the other side, in a custodial exchange, ETF, or Wealthsimple Crypto, the real Crypto currency is held and owned by the Exchange, ETF Provider (Evolve, Purpose, CI Galaxy) or Wealthsimple. They are the ones who have the private keys. This ultimately means, you might be out of your crypto in case of a security breach, bankruptcy, or government regulations confiscating crypto currencies.

Cryptocurrency Exchanges (Canada and Global)

The most direct method to own cryptocurrency is to buy directly through an exchange. The simplified steps are outlined below:

  1. Research and join a local or global Crypto Exchange
  2. Transfer funds using Interac, wire, pre-authorized bank, debit card, credit card, or external Wallet Transfers
  3. Use your fund and purchase the cryptocurrency
  4. If Custodial, leave your coin with the exchange and save some fees
  5. If Non-Custodial, get your own Wallet and transfer your coins to your wallet (Network Fees)
Direct Buying Bitcoin
Direct Bitcoin Purchase

There are many cryptocurrency exchanges to choose from. However, as always, I like to keep it Canadian and encourage others to use and support a local Canadian exchange. The other benefit is to fund the account with the local CAD currency directly from your Canadian bank account avoiding the foreign exchange hassle. Below is the chart for the most used Canadian Cryptocurrency Exchanges.

Crypto ExchangeAvailable CryptocurrenciesTrading Fees
BitbuyBitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, EOS, Stellar, Aave, Chainlink0.20%
CoinberryBitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple0.50%
CoinSmartBitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, EOS, Stellar, Tether, Cardano0.20%
NDAXBitcoin, Ethereum, Litecoin, Ripple, EOS, Stellar, Dogecoin, Cardano, Tether, Chainlink, Polkadot0.20%
NewtonBitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, Stellar, USD Coin, Tether, Monero, QCAD, Aave, Dogecoin, Chainlink, Uniswap, Polygon (MATIC), Compound, Dai, SushiSwap, Synthentix, Curve, PolkadotNone
ShakepayBitcoin, EthereumNone
Canadian Cryptocurrency Exchanges Chart

Bitbuy Crypto Exchange

Bitbuy is the most established and popular cryptocurrency exchange in Canada. One unique feature of Bitbuy is its separated channel for basic traders (Express Trade) and experienced traders (Pro Trade). Bitbuy currently offers BTC, LTC, ETH, BCH, XRP, EOS, XLM, AAVE, and LINK.

Bitbuy Crypto Exchange
Bitbuy Crypto Exchange

Bitbuy offers different rates. Express trade cost is 0.2% for buy and sell. Interact e-Transfer deposit or withdrawal cost 1.5%. Wire transfer deposit is 0.5% while its withdrawal is 1%. There is no fee for digital currency deposits.

Coinberry Crypto Exchange

Coinberry offers buying Bitcoin instantly in Canada. It is an insured, FINTRAC registered & PIPEDA compliant crypto trading platform. The platform offers Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, and Stellar. A unique feature of Coinberry is its Coinberry Pay which enables individuals and merchants to accept crypto as payment.

Coinberry Crypto Exchange
Coinberry Crypto Exchange

Coinberry is great when it comes to fees. There is no fee for deposits or withdrawals. However, it charges 0.5% trading fees.

CoinSmart Crypto Exchange

CoinSmart is another great Canadian crypto exchange offering trading Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, EOS, Stellar, Tether, and Cardano. It offers a proprietary system called SmartTrade for less experienced crypto users which offers an easier way to get and trade coins without complex transactions.

CoinSmart Crypto Exchange
CoinSmart Crypto Exchange

CoinSmart charges 0.2% for single trade and 0.4% for double trade. What they consider double trade is trading two cryptocurrencies other than Bitcoin (BTC) such as Litecoin (LTC) to Ripple (XRP). There are also other fees for funding and withdrawals.

NDAX Crypto Exchange

NDAX features secure digital asset storage, multiple funding methods, and same-day deposit and withdrawal settlements, leaving you free to focus on trading, tracking, and managing your crypto portfolio. It also offers one of the largest portfolio of coins in Canada including Bitcoin, Litecoin, Ether, XRP, EOS, Stellar, Dogecoin, Cardano, Tether, Chainlink, Polkadot.

NDAX Crypto Exchange
NDAX Crypto Exchange

NADX is the most advanced platform among all Canadian Crypto exchanges. It offers regular market orders, stop-limit orders, trailing orders, and other kind of orders like fill and kill orders. NDAX receiving and deposit is free. However, it charges $25 for bank draft or wire transfer.

Newton Crypto Exchange

Newton is a great Canadian no-fee crypto trading exchange. Newton stores all the customer data in Canada, PIPEDA compliant, and even offer exportable T5 statement for investment income.

You can buy and sell Bitcoin, Ethereum, Litecoin, Ripple, USD Coin, Tether, Monero, QCAD, Stellar, XRP, Bitcoin cash, Dogecoin, Chainlink, Uniswap, Polygon (MATIC), Aave, Compound, Dai, SushiSwap, Synthetix, Curve, and Polkadot coins instantly.

Please use my Newton Referral so we both get $25 after your first $100 CAD investment.

Newton Crypto Exchange
Newton Crypto Exchange

With Newton, investors have the option to have their own wallet or use Newton’s custodian wallet. Newton buys from and sell to their users directly, allowing them to capture the bid-ask spread price difference.

Shakepay Crypto Exchange

Shakepay isn’t really an exchange but more of an app which makes it the easiest option for Canadians to buy and sell bitcoin and Ethereum. There is no transactions or commission fees with Shakepay and like Newton they make money from the buy and sell spread.

Use my Shakepay referral to get $10 when you deposit or purchase $100 CAD of BTC or ETH.

Shakepay Free Incoming & Outgoing Crypto Exchange
Shakepay Free Incoming & Outgoing Crypto Exchange

The vast majority of digital currencies held at Shakepay are stored offline in cold storage wallets.

After covering Canadian Crypto Exchanges, here are the best Global Crypto Exchanges for Canadians.

Binance Crypto Exchange

Binance is the world’s largest crypto exchange which has many features. It has pairing for all the major cryptocurrencies to trade in addition to its vast Altcoin support. Binance also supports Canadian dollar (CAD). One of the most recent usages of Binance has been the usage of its native BinanceCoin (BNB) to purchase SafeMoon.

Binance Crypto Exchange
Binance Crypto Exchange

It has tiered fees based on the user’s VIP level (VIP 0 – VIP 9). Binance charges 0.1% for any kind of transaction with a 50% discount to those using its own token BNB.

Coinbase Crypto Exchange

Coinbase is a publicly traded Cryptocurrency brokerage and one of the most secure and reliable platforms. Coinbase offers trading and managing BTC, ETH, BCH, and LTC through their Coinbase App and Coinbase Wallet App. This is the best exchange for American citizens. However, Coinbase doesn’t offer any Altcoins.

Coinbase Crypto Exchange
Coinbase Crypto Exchange

You can also invest in Coinbase by buying their stock $COIN which is traded on NASDAQ.

Kraken Crypto Exchange and Bittrex Crypto Exchange are two other great Global Exchanges. Kraken accepts funding in local Canadian dollar and also offers Margin and future trading. One disadvantage though is the only way to fund in CAD is to use Etana Custody, Cash or Debit via Canada Post, or Wire via Credit Union Atlantic which makes it complicated for Canadians.

How to Buy Altcoins like Dogecoin (DOGE), Cardano (ADA), SafeMoon?

SafeMoon Cryptocurrency

Occasionally, Altcoins like Dogecoin (DOGE), Cardano (ADA), or SafeMoon become popular with a skyrocketing upside in their price value coming mostly from popular memes and trending mentions on social media.

1. Buy directly on a local or global exchange offering the needed Altcoin

NDAX offers direct purchase for DOGE and ADA and some other Altcoins. If your needed Altcoin isn’t available locally, alternative is to sign-up directly with a global exchange like Binance which charges 1% – 3.5% for direct purchase of DOGE while using a paired crypto like Bitcoin costs only 0.1% in fees.

Newton and Wealthsimple Crypto also added DOGE and many other Cryptocurrencies.

Other options to buy Dogecoin for Canadians include other exchanges like Paybis and Karken.

2. Buy BTC or ETH on local exchange > Transfer your coins to a global exchange> Trade for DOGE or ADA

Newton Instructions to Buy Dogecoin
Newton Instructions to Buy Dogecoin

Other method to buy these coins (DOGE, ADA) in Canada is to purchase a currency that is available in trading pairs on a local Exchange. For example, to buy Dogecoin, investors can buy Bitcoin or Ethereum using one of Canadian Exchanges like Newton, Bitbuy, or Coinberry.

Once Bitcoin or Ethereum purchase is done, investors need to transfer their Bitcoin or Ethereum to a Global Exchange like Binance and trade their BTC or ETH for DOGE or ADA.

3. Use PancakeSwap Technique

Buying currencies like SafeMoon which is another highly trending DeFi token isn’t as straightforward. SafeMoon also penalizes sellers with a 10% fee which gets distributed among other holders to encourage buying and holding. Currently, the only method to purchase SafeMoon is called PancakeSwap technique as this DeFi Token is only offered on PancakeSwap, BitMart, WhiteBit and Bakery Swap exchanges.

PancakeSwap Instructions to Purchase SafeMoon

  1. Download the app, Trust Wallet
  2. Purchase BinanceCoin (BNB)
  3. On “Trust Wallet”, Click on BNB, More, Swap, and choose “Swap to Smart Chain”
  4. Go to the DApps tab at the bottom and find PancakeSwap. iPhone users may need to enable the trust browser, then use the browser tab. You can also click the BUY NOW button on SafeMoon website if you’re not on mobile.
  5. Click “Select a currency” and enter this contract address into the search field, and you should be able to find SafeMoon. 0x8076c74c5e3f5852037f31ff0093eeb8c8add8d3
  6. Before swapping, click on the cog wheel and set the slippage to between 11-12%
  7. Now, set the amount you want to purchase and press the swap button.
  8. Confirm the transaction and Hold! (Not a financial advice)

Cryptocurrency Wallet

After creating your account in one of these exchanges and purchasing your cryptocurrency, it is time to decide where to store the beloved digital currency. There are multiple options:

  1. Keep them with the same exchange if they offer Custodial Wallet
  2. Transfer your Cryptocurrency to your own Hot Wallet
  3. Transfer your Cryptocurrency to your own Cold Wallet

To transfer coins from the exchange to your own wallet, you only need to know your coin address. However, transferring comes with a network fee which is sometimes very high. Below I will dive in explaining the two types of wallets (Hot Wallet and Cold Wallet) which can be used for storing your coins.

Hot Wallets (Software Wallets)

Hot (Software) Wallets come in either online or desktop forms. The benefit of using a hot wallet is that they can hold any cryptocurrency without additional cost making it a free wallet. Other benefits of Hot Wallets include the convenient, easy, and fast methods of sending and receiving payments.

Mainstream cryptocurrencies like Bitcoin or Ethereum have many different available digital wallets to choose where each offers its unique features and customizations. The most important consideration is security. They are vulnerable and can be hacked as the security keys to access the cryptos are stored in online servers. Some of the best Hot Wallers are listed below:

Blockstream Green Hot Wallet
Blockstream Green Hot Wallet
  1. Exodus is a free Mobile and Desktop wallet offering over than 100 cryptocurrencies.
  2. Mycelium is a free Mobile-Only wallet offering Bitcoin, Ether, ERC-20 tokens, and FIO tokens.
  3. Electrum is a free Mobile and Desktop wallet which only offers Bitcoin storage.
  4. Wasabi is a free Desktop-Only wallet limited to storing Bitcoin only.
  5. Blockstream Green is another Bitcoin Mobile and Desktop solution.
  6. Other Wallets: Aqua, ZenGo

Cold Wallets (Hardware Wallets)

Cold (Hardware) Wallets are a specialized devices designed to serve as a physical cryptocurrency storage. The main advantage of the cold wallet is that it is held physically by the owner similar to owning any physical asset. They are also compact, easy to carry around, backup, and store safely.

There are some disadvantages of holding cold wallets. The cost is one to consider. However, when holding a big value in Cryptocurrency, the cost of a cold storage can be negligible. The other consideration is that cold storages can mostly only hold the top cryptocurrencies like Bitcoin, Ethereum, Dash, and similar ones.

Ledger Cold Storage Hardware Wallet
Ledger Cold Storage Hardware Wallet

The main advantage of Cold Wallets is their security.  In a cold wallet, you have full control, and everything is offline without internet connection so can’t be hacked. Of course if you lose it without a backup, it is gone. In addition, consider that cold wallets are impenetrable. The codes are nowhere other than your physical device. If it is damaged, stolen, or lost, it is the end of it. No way to take your crypto back.

CoolWallet S Mobile & Cold Wallet
CoolWallet S Mobile & Cold Wallet

Some of the well known and trusted cold wallet hardware devices are: Trezor T, Ledger Nano X, Trezor One, KeepKey, and CoolWallet S.

Keep in Exchanges or Transfer to Own Wallet (Self-Custody)

This is one of the most important decisions to make. Most exchanges offer regular offsite backup, encryption, layers of security, and fraud insurance. This means even in case of a cybersecurity hack, they will return your coins to you. However, it is very important to distinguish between a cyber attack loss and solvency (Bankruptcy).  

Yes, Exchanges can be hacked or disappear specially the unregulated ones. The largest crypto hack happened between 2011 and 201. This Bitcoin hack resulted in the loss of 744,408 customer-owned and 100,000 Mt. Gox-owned bitcoins, along with $27 million cash from Mt. Gox.

If the Exchange offers insurance for cyber and solvency loss, it is safe to use their custodian wallet. However, if they don’t offer any bankruptcy insurance, you should transfer your coins to your own wallet to have full control and avoid any loss in case of the exchange or their custodian wallet bankruptcy. Of course this is not a concern for the bigger exchanges like Binance and Coinbase.

On the other hand, going with self-custody means you are responsible to backup and safeguard your private key. I totally discourage usage of hosted or custodial wallets unless it is provided by one of the biggest and most reliable exchanges which are legally a registered financial institute and offer full insurance in case of cyber attack or bankruptcy.

Cryptocurrency Account – Wealthsimple Crypto

Wealthsimple Crypto is one of te most convenient methods for Canadians to trade Bitcoin and Ethereum 24/7. There is no deposit or withdraw fees. Wealthsimple custodian is Gemini Trust. However, Wealthsimple charges 1.5-2% Operation Fee per transaction.

Wealthsimple just added many Altcoins to be purchased directly. Currently they offer Aave (AAVE), Balancer (BAL), Basic Attention Token (BAT), Bitcoin (BTC), Bitcoin Cash (BCH), Chainlink (LINK), Compound (COMP), Curve (CRV), Dogecoin (DOGE), Ethereum (ETH), Kyber Network (KNC), Litecoin (LTC), Maker (MKR), Synthetix (SNX), Uniswap (UNI), and Yearn.Finance (YFI).

Wealthsimple Crypto
Wealthsimple Crypto

Like owning a ETF which is explained below, you don’t really own the Crypto as you, the investor, don’t have the private key. This means you can’t transfer the coin to your wallet. The other major issue is that the trading fee or spread isn’t fixed and can be up to 2%.

If you read till here, Congratulations! You are now all set to start trading and investing in Cryptocurrencies directly. However, if you got dizzy and feel overwhelmed, don’t give up. There is now a much easier way to invest in Cryptocurrencies by using ETFs traded normally on Toronto Stock Market (TSX).

I recommend opening a brokerage account with Questwealth or Wealthsimple for trading ETFs. Wealthsimple offers totally free commission buying and selling while Questrade offers only free ETF purchase.

To get up to $250 or a free month in Questwealth, please use my Referral QPass 646713816388276. You will get below based on the account and your contributions.

Questrade Trade

Cryptocurrency ETFs in Canada (Bitcoin ETFs & Ethereum ETFs)

Currently approved Cryptocurrency ETFs are only covering Bitcoin and Ethereum. They are different than traditional ETFs were there is exposure to many underlying equities. In Crypto ETFs, they only hold one asset, either Bitcoin or Ether which provide investors with a convenient and simplified way to get exposure to bitcoin and Ethereum.

Owning a crypto ETF reduces the headache as the investor won’t have to deal with exchange or wallet. It is also possible to own these ETFs in registered accounts including RRSP, RRIF, RDSP, DPSP, RESP and TFSA.

Wealthsimple Trade is Canada’s first $0 commission App.
Sign up using my referral code 8RR_5G to receive $10 to trade.

You can potentially grow your money tax free by trading these ETFs like any other ETF inside a TFSA account. All these ETFs have the same features of buying real Bitcoin or Ethereum and holding them through their Custodians in secure offline cold storages. Here is the process:

Bitcoin ETF Owning
  1. Investor purchases ETF units on TSX the same way they buy any other stock or ETF
  2. ETF provider use the proceeds to purchase Bitcoin or Ether from institutional-grade liquidity providers
  3. The Bitcoin or Ether is then settled and stored in a secure, offline wallet (Cold Wallet)
  4. The investor now own units of the ETF, which owns physically settled Bitcoin or Ether

Purchasing bitcoin or Ether directly means maintaining cold storage or digital wallets, keeping track of passwords, and figuring out how to report proceeds for tax purposes. There is the risk of losing your investment completely if you forget a password, or potentially complicated tax filing requirements.

On the other hand ETF Advantages include:

  • Eligible for Registered accounts including RESP, RRIF, RRSP & TFSA
  • Can be purchased or sold using a traditional investment brokerage account
  • No need to maintain digital wallet or cold storage
  • No need to manage passwords and private keys

However, Cryptocurrency ETFs come with some serious disadvantages including MER fees up up to 1.5%. In addition, regardless of what the ETF provider says, you don’t really own the coin itself as you don’t have the private key to access it and can’t exchange your ETF with a real Bitcoin or Ethereum. In addition, investors lose the decentralized untraceable feature which means any government regulations will be enforced.

Here is the list of currently available Bitcoin ETFs in Canada. They all have almost the same features except HBIT which follows bitcoin future. The main difference is management and MER fees.

Canadian Bitcoin ETFs Comparison List

Bitcoin ETFPurpose Bitcoin ETFCI Galaxy Bitcoin ETFEvolve Bitcoin ETFHorizon BetaPro Bitcoin ETF3iQ CoinShares Bitcoin ETF
ManagerPurpose InvestmentsCI Investments Inc & Galaxy DigitalEvolve Funds GroupHorizon ETFs Management3iQ CoinShares
Management Fee1.00%0.40%0.75%1.00%1.00%
Bitcoin Price IndexTradeblock XBXBloomberg Galaxy BitcoinCME CF Bitcoin Reference RateHorizons Bitcoin Front Month Rolling FutureMVIS CryptoCompare Bitcoin Benchmark Rate
Custody CidelCidelCidelCIBC MellonCidel
AuditorERNST & YOUNGERNST & YOUNGERNST & YOUNGKPMGRaymond Chabot Grant Thornton
Canadian Bitcoin ETFs Comparison Chart

Purpose Bitcoin ETF (BTCC, BTCC.B, & BTCC.U) – Management Fee 1%

Purpose Bitcoin ETF was the world’s first Bitcoin ETF. As of April 23rd, 2021, the fund holds 18600.0928 BTC and comes in three series. CAD Hedged BTCC, CAD Unhedged BTCC.B, and USD BTCC.U.

Purpose Bitcoin ETF Holdings
Purpose Bitcoin ETF Holdings

Purpose Bitcoin ETF management fee is 1% but MER (Management Expense Ratio) can be up to 1.5%.

CI Galaxy Bitcoin ETF (BTCX.B & BTCX.U) – Management Fee 0.40%

CI Galaxy Bitcoin ETF invests in bitcoin and CI Bitcoin Fund provides exposure to bitcoin by buying units of CI Galaxy Bitcoin ETF. This ETF comes in two series. CAD Unhedged BTCX.B and USD BTCX.U which carry a 0.40% fee with an MER capped at 0.95%.

Evolve Bitcoin ETF (EBIT & EBIT.U) – Management Fee 0.75%

EBIT offers investors exposure to bitcoin by investing directly in bitcoin, with EBIT’s holdings of bitcoin priced based on the CME CF Bitcoin Reference Rate, a once-a-day benchmark index price for bitcoin denominated in US dollars.

Evolve Bitcoin ETF comes in two series. CAD Unhedged EBIT and USD EBIT.U. Cidel Trust Company and Gemini Trust Company are respectively the ETF’s Custodian and Sub-Custodian. The ETF’s bitcoin is held in cold storage by sub-custodian Gemini Trust Company. Gemini uses segregated cold storage bitcoin addresses which are directly verifiable via the Bitcoin blockchain.

EBIT and EBIT.U have a 0.75% plus tax management fee.

Horizon BETAPRO Bitcoin ETF (HBIT & HBIT.U)Management Fee 0.40%

Horizon BetaPro Bitcoin ETF is interesting as it doesn’t directly invest in bitcoin. Instead, it provides exposure to the performance of bitcoin futures. current Underlying Index is HBIT is the Horizons Bitcoin Front Month Rolling Futures Index. This ETF comes in two series. CAD Unhedged HBIT and USD HBIT.U which carry a 0.40% fee with an MER capped at 0.95%.

3iQ CoinShares Bitcoin ETF (BTCQ, BTCQ.U) – Management Fee 1.00%

BTCQ tracks MVIS CryptoCompare Bitcoin Benchmark Rate Index (BBR) which comes in two series. CAD Unhedged BTCQ and USD BTCQ.U. Cidel Trust Company and Gemini Trust Company are respectively the ETF’s Custodian and Sub-Custodian.

The 3iQ CoinShares Bitcoin ETF’s management fee is 1.00% with a 1.25% cap on its MER.

BetaPro Inverse Bitcoin ETF (BITI) – Management Fee 1.45%

BITI is designed to provide one-times (100%) the inverse (opposite) of the daily performance of Bitcoin Futures. The current Underlying Index of BITI is the Horizons Bitcoin Front Month Rolling Futures Index (Excess Return). BITI management fee is 1.45% plus applicable tax.

Considering the speculative nature of Bitcoin and the volatility of its market, an investment in any of these ETFs is not intended as a complete investment program and is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment.

Now, I am going to discuss Ethereum ETFs in Canada. Similar to Bitcoin ETFs, Ethereum ETFs hold real Ethereum coin on an offline cold storage wallet.

Canadian Ether ETFs Comparison List

Ethereum ETFPurpose Ether ETFCI Galaxy Ethereum ETFEvolve Ether ETF3iQ CoinShares Ether ETF
ManagerPurpose InvestmentsCI Investments Inc & Galaxy DigitalEvolve Funds Group3iQ Digital
Management Fee1.00%0.40%0.75%1.00%
Ether Price IndexTradeblock XBXBloomberg Galaxy EthereumCME CF Ether-Dollar Reference RateMVIS CryptoCompare Ethereum (EBR)
Custody Cidel TrustCidel TrustCidel TrustCidel Trust
Sub-CustodianGemini TrustGemini TrustGemini TrustGemini Trust
AuditorERNST & YOUNGERNST & YOUNGERNST & YOUNGRaymond Chabot Grant Thornton
Canadian Ether ETFs Comparison List

Purpose Ether ETF (ETHH, ETHH.B, & ETHH.U) – Management Fee 1%

Purpose Ether ETF is the world’s fist physically settled Ether ETF. As of April 23rd, 2021, the fund holds 13343.6225 ETH and comes in three series. CAD Hedged ETHH, CAD Unhedged ETHH.B, and USD ETHH.U.

Purpose Bitcoin ETF management fee is 1% but MER (Management Expense Ratio) can be up to 1.5%.

CI Galaxy Ethereum ETF (ETHX.B & ETHX.U) – Management Fee 0.40%

CI Galaxy Ethereum investment objective is to provide holders of units exposure to Ether through an institutional-quality fund platform based on Bloomberg Galaxy Ethereum Index. This ETF comes in two series. CAD Unhedged ETHX.B and USD ETHX.U which carry a 0.40% fee with an MER capped at 0.95%.

Evolve Ethereum ETF (ETHR & ETHR.U) – Management Fee 0.75%

ETHR offers investors exposure to Ether by investing directly in Ethereum, with ETHR’s holdings of Ether priced based on the CME CF Ether-Dollar Reference Rate (“ETHUSD_RR”).

Evolve Ether ETF comes in two series. CAD Unhedged ETHR and USD ETHR.U. Cidel Trust Company and Gemini Trust Company are respectively the ETF’s Custodian and Sub-Custodian.

ETHR & ETHR.U carry a 0.75% plus tax management fee.

3iQ CoinShares Ether ETF (ETHQ, ETHQ.U) – Management Fee 1.00%

ETHQ tracks MVIS CryptoCompare Ethereum Benchmark Rate Index (EBR) which comes in two series. CAD Unhedged ETHQ and USD ETHQ.U. Cidel Trust Company and Gemini Trust Company are respectively the ETF’s Custodian and Sub-Custodian.

The 3iQ CoinShares Ether ETF’s management fee is 1.00% with a 1.25% cap on its MER.

These four ETFs (ETHH, ETHX, ETHR, and ETHQ) are the currently approved Ether ETFs in Canada.

Final Considerations & Recommendations

We covered a lot in this single post. Honestly, my recommendation is to do your own research and don’t let the hype gets the best of you leading to big losses of your hard earned money. However, Crypto is here to stay and it will grow daily. If you’d like to start, don’t invest more than 3% of your saving due to the high risk.

Depends on what you decide to purchase, open an exchange account or buy an ETF. Either way, Count in all the fees including the transfer in, transfer out, transaction, commission, and MER fees. Between the three choices, I don’t recommend using Wealthsimple Crypto.

If you plan to only buy Bitcoin or Ethereum, I’d say keep it simple and buy the ETF. I personally would buy Evolve EBIT for Bitcoin and ETHR for Ethereum because they offer the lowest fee.

When it comes to Exchanges, if what you are planning to buy is offered on Newton, open a Newton account to save on fees. Second choice will be NDAX for its great coin offering and advanced trading platform. Finally, if you are too advanced and need to buy another Altcoin, Binance is a great choice as it accepts CAD and offers one of the best fees for a global exchange.

Are you a Crypto investor or trader? What is your favorite exchange or ETF?

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