Bitcoin Hits Highs These ETFs Could Capture the Upside
Bitcoin hits record highs amid U.S. fiscal concerns—explore top Canadian Bitcoin ETFs for secure crypto exposure.
Amid major shifts in the U.S. economic landscape, Bitcoin surged to a new all-time high last week. This milestone follows a sharp drawdown earlier this year, marking a striking rebound for the cryptocurrency against a backdrop of evolving macro conditions.
Confluence of Market Events
While Moody’s downgrade of the U.S. sovereign credit rating was widely dismissed as a ‘non-issue,’ its timing was notable. It coincided with the House passing President Trump’s ‘Big, Beautiful Bill’—a sweeping package to extend 2017-era tax cuts, boost defense spending, and fund mass deportations. The bill now heads to the Senate for approval.
The passage of the bill raised concerns about the ballooning U.S. budget deficit, which currently stands at $36.22 trillion. According to the Congressional Budget Office, it is estimated that President Trump’s bill would add another $3.8 trillion to the debt level.
Rising debt levels often lead investors to demand higher yields as compensation, and that played out last week as 20- and 30-year Treasury yields ticked higher amid growing budget concerns. It’s also plausible that these fiscal developments contributed to Bitcoin’s price surge, as the cryptocurrency is increasingly viewed as a safe-haven asset.
Investing in Bitcoin ETFs
For Canadian investors looking to gain some exposure to Bitcoin via ETFs, the following products provide the requisite exposure.
The CI Galaxy Bitcoin ETF (BTCX.B) directly invests in Bitcoin, using top-tier providers like custodians and trading platforms to manage its assets. The fund’s value is based on the Bloomberg Galaxy Bitcoin Index (BTC), which tracks the USD price of a single Bitcoin. This index is managed by Bloomberg and co-branded with Galaxy Digital Capital Management, the ETF’s Subadvisor.
The Fidelity Advantage Bitcoin ETF (FBTC) mainly invests in Bitcoin, acquiring it from trusted sources where Bitcoin can be exchanged for US or Canadian dollars. The management team thoroughly evaluates each source, reviewing its reputation, leadership, key shareholders, and compliance with anti-money laundering (AML) rules and know-your-client policies
The Purpose Bitcoin ETF (BTCC.B) primarily invests in Bitcoin, aiming to offer unitholders long-term capital growth. It provides a secure, convenient, and cost-effective alternative to directly owning Bitcoin.
The Evolve Bitcoin ETF (EBIT) gives investors exposure to Bitcoin’s daily U.S. dollar price changes with minimal tracking error, leveraging the benefits of an ETF structure. It directly holds Bitcoin, priced using the CME CF Bitcoin Reference Rate, a daily benchmark in U.S. dollars.
One of this year’s high-profile launches is the iShares Bitcoin ETF (IBIT/IBIT.U). Debuting on CBOE Canada in January 2025 following the success of its U.S. counterpart, the Canadian version offers similar exposure and has already amassed over CA$200 million in assets.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
