On February 18, 2021, something huge happened in Canadian finance - and the world took notice. The Bitcoin ETF wasn’t just approved in Canada; it was launched. And it wasn’t a copycat. It was the first of its kind anywhere on the planet. For years, investors had been asking: How do I buy Bitcoin without holding the keys myself? The answer arrived in Toronto, not Silicon Valley, not Wall Street. And it changed everything.
The World’s First Bitcoin ETF
The Purpose Bitcoin ETF, trading under the ticker BTCC, began life on the Toronto Stock Exchange on February 18, 2021. Created by Purpose Investments, a Toronto-based fund manager led by CEO Som Seif, it wasn’t a futures contract. It wasn’t a trust. It wasn’t a tokenized asset. It was a true, physical, exchange-traded fund - meaning for every share you bought, the fund bought actual Bitcoin and locked it away in secure cold storage. No middlemen. No derivatives. Just Bitcoin, held on your behalf. This wasn’t a small tweak. It was a full rewrite of how regular people could invest in Bitcoin. Before this, if you wanted Bitcoin exposure in your RRSP or TFSA, you were stuck with risky exchanges, complicated wallets, or shaky over-the-counter deals. The Purpose ETF made it as simple as buying shares of Apple or Shopify. You didn’t need to understand blockchain. You didn’t need a crypto wallet. You just needed a brokerage account.Why Canada Got There First
The Ontario Securities Commission (OSC) didn’t wait for the U.S. to catch up. While the SEC in Washington was stuck debating whether Bitcoin was a security or a commodity - and whether exchanges were safe enough - Canada moved. The OSC looked at the structure, the custody solutions, the compliance framework, and said: This works. They didn’t ignore the risks. They just built guardrails around them. The fund had to meet strict reporting rules, use licensed custodians, and prove the Bitcoin was actually there. That’s why the ETF could be held in registered accounts like TFSAs and RRSPs - something no other Bitcoin product in the world could claim at the time. Compare that to the U.S. The first Bitcoin ETF approved there, ProShares’ BITO, launched in October 2021 - eight months later. But it didn’t hold Bitcoin. It held futures contracts. That means its price didn’t track Bitcoin directly. It tracked what traders thought Bitcoin might be worth in the future. That’s a big difference. And it came with more volatility, more fees, and less transparency.Market Reaction: A Rush That Broke Records
The demand wasn’t just strong - it was explosive. Within 48 hours of trading, BTCC had moved nearly $400 million in shares. By the end of its first month, it had over $1 billion in assets under management. That’s faster than any ETF in history, including ones tied to gold or tech giants. TD Securities reported that Bitcoin ETFs traded nearly $1 billion worth of shares in their first three days. That’s not just retail investors. That’s pension funds, family offices, and financial advisors who had been sitting on the sidelines, waiting for something regulated and trustworthy. The Purpose ETF gave them that. By its third anniversary in February 2024, BTCC still held over $2 billion in Bitcoin. That’s not a flash in the pan. That’s proof that the structure works - and that Canadians didn’t just buy it once. They kept buying.
The Ripple Effect: What Happened After
Just one day after Purpose launched, Evolve Investments followed with its own Bitcoin ETF. Suddenly, Canada had two options. Then more came. The market didn’t get crowded - it got competitive. And that drove down fees, improved liquidity, and made the whole thing even better for investors. But the real impact was global. When the U.S. finally approved spot Bitcoin ETFs in 2024, they didn’t invent anything new. They copied Canada’s model. The custody rules. The transparency. The structure. Even the ticker symbols looked familiar. Som Seif said it best: “We’re now seeing others take what we innovated and bring that to their markets.” Australia, Hong Kong, and Singapore all took notes. Europe, which had ETF-like products for years, finally started calling them true ETFs after seeing Canada’s success. The world didn’t wait for Wall Street. It looked north.How It Works - In Plain Terms
Think of the Bitcoin ETF like a mutual fund, but for Bitcoin instead of stocks. Every time someone buys a share, Purpose Investments uses that money to buy real Bitcoin from a licensed exchange. That Bitcoin is then stored in a secure, offline vault - not on any internet-connected server. No hacks. No exchange failures. The fund’s price stays close to Bitcoin’s actual price because market makers can create or redeem shares whenever there’s a gap. If the ETF trades at $50 but the Bitcoin inside is worth $52, someone can buy shares, swap them for Bitcoin, sell the Bitcoin, and make a profit. That keeps prices in line. And because it’s a registered investment product, you can hold it in your TFSA. That means any gains are tax-free. Or in your RRSP - so you defer taxes until retirement. That’s huge. You’re not just investing in Bitcoin. You’re investing in Bitcoin the Canadian way.
Why It Still Matters Today
Five years later, Bitcoin ETFs are everywhere. But Canada still holds the original blueprint. The Purpose ETF didn’t just give people access - it gave them legitimacy. Before BTCC, banks wouldn’t touch Bitcoin. Now, they offer it in their online portals. Before BTCC, financial advisors said, “We don’t recommend crypto.” Now, many include it in diversified portfolios. The ETF didn’t make Bitcoin a currency. It made it an asset. And that’s what matters to most investors. You don’t need to mine it. You don’t need to store it. You just need to buy a share. And if you’re in Canada? You still have the best access in the world. No other country launched a spot Bitcoin ETF with full regulatory backing before us. And even now, after the U.S. followed, Canadian ETFs still lead in total assets under management per capita.What’s Next?
The next wave is likely to be Bitcoin ETFs that include staking or yield features - but that’s still uncharted territory. Canada’s regulators are watching. They’ll need to balance innovation with safety. But they’ve already proven they can move fast without cutting corners. For now, the Purpose Bitcoin ETF remains the gold standard. It’s not flashy. It’s not hype-driven. It’s just a simple, secure, regulated way to own Bitcoin. And that’s why it still works.What was the first Bitcoin ETF in Canada?
The first Bitcoin ETF in Canada was the Purpose Bitcoin ETF (BTCC), launched on February 18, 2021, on the Toronto Stock Exchange. It was also the world’s first spot Bitcoin ETF available to retail investors, meaning it held actual Bitcoin - not futures or derivatives.
Can I hold a Bitcoin ETF in my TFSA or RRSP?
Yes. Canadian Bitcoin ETFs like BTCC are eligible for registered accounts such as TFSAs and RRSPs. This means any gains in a TFSA are tax-free, and gains in an RRSP are tax-deferred until withdrawal. This is a major advantage over buying Bitcoin directly on exchanges, which aren’t eligible for these accounts.
How is a Canadian Bitcoin ETF different from a U.S. Bitcoin ETF?
Canadian spot Bitcoin ETFs, like BTCC, hold actual Bitcoin. The first U.S. Bitcoin ETFs, such as ProShares BITO, held Bitcoin futures contracts, which track the future price of Bitcoin - not the current price. This leads to more volatility and tracking errors. The U.S. only approved spot Bitcoin ETFs in January 2024, and they copied Canada’s structure exactly.
Is the Purpose Bitcoin ETF still active?
Yes. As of early 2025, the Purpose Bitcoin ETF (BTCC) continues to trade on the TSX and holds over $2 billion in assets. It remains one of the largest and most liquid Bitcoin ETFs globally and is still the benchmark for how regulated Bitcoin investment should work.
Why did Canada approve Bitcoin ETFs before the U.S.?
Canada’s securities regulators, especially the Ontario Securities Commission, focused on the structure and custody of the product rather than debating Bitcoin’s classification. They required clear proof that the Bitcoin was securely stored and independently verified. The U.S. SEC delayed approvals for years, citing concerns about market manipulation and exchange security - issues Canada addressed upfront with strict custody rules.
What happened to the other Bitcoin ETFs launched in Canada?
After Purpose, Evolve launched its Bitcoin ETF the next day. Others followed, including 3iQ and Bitwise. While Purpose remains the largest, competition drove down management fees and improved liquidity. All Canadian Bitcoin ETFs now use the same core model: direct Bitcoin custody, regulatory compliance, and eligibility for registered accounts.
