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Purpose Bitcoin ETF (BTCC.B)
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Fidelity Advantage Bitcoin ETF (FBTC)
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iShares Bitcoin Trust ETF (IBIT)
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Fidelity Wise Origin Bitcoin Fund Beneficial Interest (FBTC)
I am newbie when it comes to understanding Bitcoin as a digital currency. But we continue to become more and more of a digital world.
I understand this year, the SEC approved ETFs that can be bought and sold on the exchange providing more options for liquidity. Is this also the case for Canada?
Do you believe Bitcoin would be reasonable investment holding as a small portion (say less than 10%) of an total portfolio.
Do you see a reasonable future /demand and use for bitcoin?
If yes, could you recommend 3 bitcoin ETFs that reasonable AUM and daily volumes
Thank you,
I understand there a number of questions here that require the use of more credits. That is fine and look forward, as usual to your respone.
Richard
We do think that Bitcoin is a reasonable investment. We see Bitcoin as a legitimate store of value similar to Gold and can be a good diversification tool alongside a portfolio of equities/fixed income. Canada actually approved Bitcoin ETFs back in 2021, before the US. The SEC approval likely helped liquidity in both markets. While it may not be used for everyday purchases we think the blockchain behind it has a world of use cases which could be what increases demand, while the supply is fixed. We have commented in depth on our stance here. For Canadian ETFs, we like: BTCC.B and FBTC, and for US-based ETFs we like: IBIT and FBTC.
Although, investors should be aware of the volatility and significant risks that digital assets have. Bitcoin has experienced several large drawdowns over the years.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in BTCC.B.