Top ETFs for Crypto Exposure as Bitcoin nears $100K
Bitcoin nears $100K as Trump sparks crypto optimism; ETFs offer simplified exposure to these surging digital assets.
The price rally in cryptocurrencies, specifically Bitcoin, is growing steadily due to President-elect Donald Trump’s actions. As reported in Bloomberg, Trump’s transition team has begun discussing whether to create a White House post dedicated to digital-asset policy. Furthermore, as the U.S. Securities and Exchange Commission announced, Chair Gary Gensler will step down from the Commission effective at noon on January 20, 2025—the day Trump is scheduled to be inaugurated. Mr. Gensler was a prominent opponent of cryptocurrencies.
The foreseeable change in the regulatory landscape and the growing interest in cryptocurrencies have resulted in the global cryptocurrency market growing by approximately $1 trillion since November 5th. The greatest beneficiary of this growth is Bitcoin, as it nears the $100,000 price mark.
Getting Exposure To Bitcoin via ETFs
The recent rally in Bitcoin may have piqued the interest of some investors in gaining exposure to digital currency. For Canadian investors, several Bitcoin ETFs allow turnkey digital asset access. These ETFs expose investors to Bitcoin without needing to own or manage the cryptocurrency directly: CI Galaxy Bitcoin ETF (Ticker: BTCX.B), Fidelity Advantage Bitcoin ETF (Ticker: FBTC), Purpose Bitcoin ETF (Ticker: BTCC.B), and Evolve Bitcoin ETF (Ticker: EBIT).
The CI Galaxy Bitcoin ETF (Ticker: 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 (Ticker: 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 (Ticker: 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 (Ticker: 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.
Takeaway
For investors looking to gain exposure to Bitcoin comprehensively, the stated ETFs facilitate said exposure in a simplified manner.
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.
