3 Top Crypto Stocks and ETFs for Canadians

Crypto stocks like HIVE Blockchain Technologies (TSXV:HIVE)(NASDAQ:HVBT) may be worth it for Canadian investors.

| More on:
Diagonal chain made of zeros and ones. Cryptocurrency and mining.

Image source: Getty Images

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Tech Stocks

TFSA and coins
Tech Stocks

TFSA: Invest in These 2 Stocks for a Legit Chance at $1 Million

Are you interested in building a $1 million portfolio? Invest $20,000 in these two stocks!

Read more »

top TSX stocks to buy
Tech Stocks

2 Top Stocks That Could Turn $10,000 Into $50,000 by 2030

TSX investors can buy shares of quality growth stocks, such as Snowflake, allowing them to generate exponential gains in 2023…

Read more »

TIMER SAYING TIME FOR ACTION
Tech Stocks

Don’t Wait for a Market Bottom: These 2 Stocks Are on Sale

Two of the best Canadian growth stocks could keep soaring in 2023 and beyond.

Read more »

clock time
Tech Stocks

3 Top ‘Future’ Stocks to Hold for the Rest of This Decade

Canadian growth stocks like Constellation Software are starting to look appealing.

Read more »

Credit card, online shopping, retail
Tech Stocks

Nuvei stock: Can This Gainer Keep on Running?

Despite a 40% increase in its stock price, I expect the uptrend in Nuvei to continue, given its higher growth…

Read more »

value for money
Tech Stocks

3 Growth Stocks You Can Buy Now With Less Than $100

Thanks to the recent bear market, you can now buy growth stocks like Shopify at bargain prices.

Read more »

Upwards momentum
Tech Stocks

The 1 Canadian Stock I Think Could Double in 3 Years

Here’s why this top Canadian stock has the potential to double in three years or sooner.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Why Open Text Stock Rose 11% Last Month

Not all tech stocks are performing poorly. In fact, Open Text stock (TSX:OTEX) continues to rise higher, though it's still…

Read more »