The third Bitcoin ETF launches in Canada, this time with the worlds lowest management fee for a Bitcoin ETF at only 0.4% p.a.
As announced on Business Wire, the CI Galaxy Bitcoin ETF launched on 9th February 2021 under the tickers BTCX.B (trading in Canadian dollars – unhedged) and BTCX.U (trading in U.S. dollars).
As market validation of cryptocurrencies continues to accelerate, we are offering investors a secure and lower-cost way to participate in the bitcoin market.Kurt MacAlpine, Chief Executive Officer of CI Financial Corp
Benefits of the CI Galaxy Bitcoin ETF include:
- Lowest management fee of 0.40%
- A streamlined means of accessing bitcoin
- Storage of bitcoin in a segregated cold storage system, protected in accordance with industry-leading protocol
- Leveraging the experience of GDAM’s veteran portfolio management team to execute the purchase and sale of bitcoin
- Ability to conveniently trade units correspondent to real-time changes in value
- Can be held in registered plans like TFSA and RRSP.
What is a Bitcoin ETF?
An exchange-traded fund (ETF) is a type of investment fund. […] An ETF holds assets such as stocks, bonds, currencies, and/or commodities. […] Most ETFs are index funds, that is, they hold the same securities in the same proportions as a certain stock market index or bond market index.What is an ETF? Wikapedia
Bitcoin ETFs are exchange-traded funds that track the value of Bitcoin and trade on traditional market exchanges rather than cryptocurrency exchanges. They allow investors to invest in bitcoin without having to go through the hassle of using a cryptocurrency exchange while providing leverage to its price.
Using pooled investment funds, the funds purchase the actual bitcoins and hold them in “cold storage” — an offline destination that can’t easily be hacked or breached. The ETFs then track the performance of bitcoin in US dollars (or such) on a specific index.
Further Benefits of buying Bitcoin through an ETF include:
- Trading flexibility
- Portfolio diversification and risk management
- Lower costs
- Tax benefits
- Familiar investment structure
Bitcoin ETF’s are not yet available in Australia, stay tuned.
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