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TFSA and RRSP Eligible Crypto Exchange Traded Funds for Canadians

For those Canadian’s dreaming of following in the footsteps of Peter Thiel, with 5 billion sitting in his tax-free Roth IRA (Forbes)…
TFSA and RRSP Eligible Crypto Exchange Traded Funds for Canadians
Photo by Hakan Nural / Unsplash

Top Bitcoin and Ether ETFs for TFSA and RRSP’s 2022

Canada’s new TFSA and RRSP eligible funds on the TSX

Anyone looking to read further must understand the risk in using their TFSA or RRSP accounts to invest in crypto. I am not a financial advisor, nor is this financial advice and please do your own research before risking any of your retirement savings. This is intended for educational purposes only, and all financial decisions should be made with the assistance of an accredited advisor.

Before going over the options available, it is essential to understand the limitations of an exchange-traded fund vs holding crypto in your wallet.

Concerns

The primary complaint is that you don’t own the token; you instead own shares in the fund. While the shares in the fund will offer price exposure to the token they hold, the fund is the token holder. So say goodbye to any airdrops or plans to use them in a liquidity pool.

There are also percentage fees charged by the fund and trading hour restrictions.

Benefits

What then is the upside to putting some of your hard-earned savings into a crypto ETF? In a word, taxes! With a TFSA or RRSP eligible fund, you can follow the crypto price while still getting the tax benefit either has to offer.

Other benefits are the simplicity of not requiring a crypto wallet and the safety of trading on a regulated exchange.

Funds

The following list is not exhaustive but provides insight into some RRSP and TFSA eligible ETF options.

Evolv ETFs

  • EBIT — Unhedged exposure to BTC in CAD
  • ETHR — Unhedged exposure to ETH in CAD
  • ETC — Unhedged exposure to BTC and ETH in CAD
  • USD (.U) versions are also available
  • Management Fees 0.75%

Purpose ETFs

  • BTCC — FX hedged exposure to BTC in CAD
  • ETHH — FX hedged exposure to ETH in CAD
  • CRYP — FX hedged exposure to BTC and ETH, options, futures and crypto-related equities in CAD
  • BTCY — Earn monthly yield via an active option overlay strategy on FX hedged exposure to BTC in CAD
  • ETHY — Earn monthly yield via an active option overlay strategy on FX hedged exposure to ETH in CAD
  • USD (.U) and non FX hedged (.B) versions are also available
  • Management Fees between 1.1% and 1.25%

CI Galaxy ETFs

  • BTCX.B — Unhedged exposure to BTC in CAD
  • ETHX.B — Unhedged exposure to ETH in CAD
  • USD (.U) versions are also available
  • Management Fees 0.4%

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Disclaimer

This Content is for informational purposes only; you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by me or any third-party service provider to buy or sell any securities or other financial instruments.