Key Takeaways
- • Canadian crypto ETF assets under management rose 8.8% to C$5.68 billion in October 2025 from C$5.22 billion in September 2024, according to Morningstar.
- • Bitcoin hit a record high of USD 126,198 on Oct. 6 and was up 25% year to date through Oct. 10, per Morningstar.
- • Canadians can access nearly three dozen crypto-themed ETFs domestically and more than 30 US-domiciled ETFs through their trading accounts.
- • Canadian bitcoin ETFs are eligible for TFSAs and RRSPs, though capital losses on RRSP holdings cannot be claimed.
- • Morningstar's Dan Kemp warns that bitcoin's valuation is difficult to estimate and that it is primarily a vehicle for speculation.
Summary
Morningstar reports that bitcoin reached a record high above USD 126,000 on Oct. 6, the highest level in its 16-year trading history, before volatility pulled it back to about USD 118,000. The article attributes the rally to institutional demand, looser US crypto regulation under President Donald Trump, and deeper integration of crypto into global financial systems. It notes that the combined crypto market value rose above USD 4 trillion.
Canada approved spot bitcoin ETFs in February 2021, becoming the first country to do so. The Purpose Bitcoin ETF was the pioneer, followed by the CI Galaxy Bitcoin ETF and Fidelity Advantage Bitcoin ETF. BlackRock entered the Canadian market in January 2025 with the low-cost iShares Bitcoin ETF (IBIT), a move the article says disrupted a landscape dominated by high-fee products. Canadian crypto ETF assets under management grew 8.8% to C$5.68 billion in October from C$5.22 billion in September 2024. Investors can also access more than 30 US-domiciled ETFs through their brokerage accounts.
Morningstar outlines several structural considerations. Canadian bitcoin ETFs can be held in TFSAs and RRSPs, with TFSAs allowing tax-free growth and withdrawals and RRSPs offering tax-deferred growth and contribution deductions, though losses cannot be claimed as capital losses. Currency exposure matters for USD-denominated products, and currency-hedged versions can remove that uncertainty. Michael Zagari of Wellington-Altus Private Wealth and Francis Sabourin of Francis Sabourin Wealth Management, Richardson Wealth Limited, distinguish spot ETFs, which hold bitcoin directly, from synthetic ETFs, which use futures and may diverge from spot prices due to contango or backwardation. Covered call bitcoin ETFs are presented as an option that blends appreciation with yield.
On regulation, Sabourin says Canadian regulators, including the Canadian Securities Administrators and FINTRAC, periodically review crypto funds for liquidity, custody, and structure. Proposed changes under discussion include stricter custodianship rules and limits on which funds can hold crypto assets, along with possible stablecoin-specific rules. The article also cautions investors on risk. Dan Kemp of Morningstar says valuing bitcoin is difficult because it is primarily a speculative vehicle, and Zagari notes that ETFs remain volatile. Sabourin notes that ETFs mitigate some custodial risk. The article concludes that investors should size exposure carefully and avoid large bets they cannot afford to lose.
Canada approved spot bitcoin ETFs in February 2021, becoming the first country to do so. The Purpose Bitcoin ETF was the pioneer, followed by the CI Galaxy Bitcoin ETF and Fidelity Advantage Bitcoin ETF. BlackRock entered the Canadian market in January 2025 with the low-cost iShares Bitcoin ETF (IBIT), a move the article says disrupted a landscape dominated by high-fee products. Canadian crypto ETF assets under management grew 8.8% to C$5.68 billion in October from C$5.22 billion in September 2024. Investors can also access more than 30 US-domiciled ETFs through their brokerage accounts.
Morningstar outlines several structural considerations. Canadian bitcoin ETFs can be held in TFSAs and RRSPs, with TFSAs allowing tax-free growth and withdrawals and RRSPs offering tax-deferred growth and contribution deductions, though losses cannot be claimed as capital losses. Currency exposure matters for USD-denominated products, and currency-hedged versions can remove that uncertainty. Michael Zagari of Wellington-Altus Private Wealth and Francis Sabourin of Francis Sabourin Wealth Management, Richardson Wealth Limited, distinguish spot ETFs, which hold bitcoin directly, from synthetic ETFs, which use futures and may diverge from spot prices due to contango or backwardation. Covered call bitcoin ETFs are presented as an option that blends appreciation with yield.
On regulation, Sabourin says Canadian regulators, including the Canadian Securities Administrators and FINTRAC, periodically review crypto funds for liquidity, custody, and structure. Proposed changes under discussion include stricter custodianship rules and limits on which funds can hold crypto assets, along with possible stablecoin-specific rules. The article also cautions investors on risk. Dan Kemp of Morningstar says valuing bitcoin is difficult because it is primarily a speculative vehicle, and Zagari notes that ETFs remain volatile. Sabourin notes that ETFs mitigate some custodial risk. The article concludes that investors should size exposure carefully and avoid large bets they cannot afford to lose.
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