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Investment Q&A

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Q: Which is better to buy? Fractionl Bitcoin via Wealthsimple, etc. or a Bitcoin ETF? Why?

Thanks! Austin

Asked by Austin on January 06, 2025

5i Research Answer:

We are not experts on Wealthsimples platform, but our understanding is that purchasing 'physical' bitcoin (fractional) through WS would be through an unregistered account, whereas purchasing the Bitcoin ETF could be through a registered or unregistered account. Thus, we feel that largely there are some potential tax benefits for purchasing a Bitcoin ETF as opposed to the physical coins through Wealthsimple.

Although, there are also management fees associated with a bitcoin ETF, whereas, holding physical bitcoin does not have management fees.

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in IBIT.

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