If you want to invest in cryptocurrency, there are many ways to get started. You can buy cryptocurrency directly. You can mine cryptocurrency. Or you can invest in crypto stocks and ETFs. For many investors, the latter of these three options is the easiest. Through crypto stocks and ETFs, you can buy and sell crypto on the stock market just like you would any other stock. All you need is a brokerage account and you’re ready to get started. With that in mind, here are three crypto stocks/ETFs for Canadians looking to get started investing in crypto.
HIVE Blockchain Technologies
HIVE Blockchain Technologies (TSXV:HIVE)(NASDAQ:HVBT) is a Canadian crypto mining company that mines Bitcoin and Ethereum. It mines crypto in cold climate data centres in Sweden, Iceland, and northern Canada. Its use of cold climate locations helps keep cooling costs low. Cooling is a big cost for data centres; servers tend to get hot, and they need to be cooled to keep them from overheating. The colder the natural climate in a given area is, the less the cooling costs. This, in turn, lowers overall cost of operating. So, HIVE’s use of cold climate data centres helps it mine crypto at a lower cost than many other miners.
HIVE delivered solid results in its most recent quarter. In it, the company delivered $66.7 million in crypto mining revenue (up 174% year over year) and $42.5 million in net income (up from a $1.9 million loss). Those are pretty strong results. And the company should keep delivering strong results as long as the price of Bitcoin and Ether keep rising.
Purpose Bitcoin ETF
Purpose Bitcoin ETF (TSX:BTCC.B) is a Canadian crypto ETF (a kind of pooled investment vehicle) that holds Bitcoin for investors. It doesn’t own any cryptocurrencies other than Bitcoin, so it’s effectively a stock market traded crypto alternative. The fund charges a 1% per year management fee. That might seem steep, but in exchange for that fee, you get the ability to hold “Bitcoin” in a TFSA. This is a big advantage. Cryptocurrency is subject to capital gains tax, which can be a lot higher than 1%. If you double your investment on cryptocurrency and then cash out, your capital gain will most likely be pretty high — incurring a heavy tax. With crypto funds like BTCC.B held in a TFSA, you avoid this tax. So, such funds are a great way to get tax-free crypto exposure.
CI Galaxy Bitcoin ETF
CI Galaxy Bitcoin ETF (TSX:BTCX.B) is another crypto fund like BTCC.B. The basic argument for holding it is the same as for holding the Purpose Bitcoin ETF: it allows you to hold crypto in a TFSA. It also spares you having to remember a crypto wallet password. However, BTCX.B has one advantage over BTCC.B: a lower fee. At 0.4%, it won’t cost you much at all. So, if you’re a fee-sensitive investor. this may be a crypto fund worth considering.