The "world's first" physical Bitcoin exchange-traded fund (ETF), the Purpose Bitcoin ETF (TSX:BTCC), has officially launched on Canada's Toronto Stock Exchange (TSX). This means you can now buy units in the ETF through a global stock broker or online share trading platform.
While this is simple enough if you're Canadian, Australians wanting to invest in the BTCC ETF will need to a do a little homework.
Unfortunately for Australian investors, there are limited brokers that offer Canadian stocks or ETFs and often the fees to invest are much higher than if you're buying US or Australian securities.
Compare online brokers. To invest in ETFs listed in Canada, you'll need to sign up to an ETF broker platform with access to Canadian stock exchanges. Our table below can help you choose.
Open and fund your brokerage account. Complete an application with your personal and financial details, such as your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
Search for the Purpose Bitcoin ETF. Find the ETF by name or ticker symbol: BTCC. Research its history to confirm it's a solid investment against your financial goals.
Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until the Purpose Bitcoin ETF reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
Decide on how many to buy. At today's price, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
Check in on your investment. Congratulations, you've invested in the Purpose Bitcoin ETF. Optimise your portfolio by tracking how your ETF performs with an eye on the long term.
Key facts about the BTCC ETF
The Purpose Bitcoin ETF began trading on the Canadian exchange under the ticker symbols TSX:BTCC.B and TSX:BTCC.U. The BTCC.B fund is Canadian dollar denominated while the TSX:BTCC.U version is US dollar denominated. Neither option is currency hedged. For those looking for a more green option, there is BTCC.j which offers a carbon offset with your Bitcoin ETF.
Regardless of which option you choose, the ETF comes with a 1.00% management fee.
Launched by Purpose Investments and headed by CEO/founder Som Seif, the fund is designed to give investors exposure to the digital currency by investing in physically settled Bitcoin.
Although it has been called "the world's first Bitcoin ETF" by the TSX, it's worth noting that other "Bitcoin-themed" or blockchain ETFs do exist, although they track companies with exposure to digital currencies, rather than physical/digital Bitcoin. BTCC is the first direct custody Bitcoin ETF.
There are also several cryptocurrency funds available in Europe that behave similarly to ETFs. To check out other Bitcoin-related ETFs, check out our cryptocurrency ETF guide.
Important: Share trading can be financially risky and the value of your investment can go down as well as up. “Standard brokerage” fee is the cost to trade $1,000 or less of ASX-listed shares and ETFs without any qualifications or special eligibility. If ASX shares aren’t available, the fee shown is for US shares. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
Kylie Purcell is the senior investments editor and analyst at Finder. She has completed a Certificate of Securities and Managed Investments (RG146) and specialises in investment products including online brokers, robo-advisors, stocks and ETFs.
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