Bitcoin ETF History in Canada: First Approvals and How They Changed Global Investing

On February 18, 2021, something big happened in finance - not in New York, not in London, but in Toronto. The Bitcoin ETF launched for the first time in the world, and it wasn’t a futures contract. It wasn’t a trust. It wasn’t a tokenized asset. It was a real, regulated, exchange-traded fund that held actual Bitcoin. And it was approved by Canadian regulators. This wasn’t just a win for Canada. It was a wake-up call for the entire financial world.

The Moment That Changed Everything

Before February 2021, if you wanted to invest in Bitcoin through a traditional brokerage account, you were out of luck. You had to set up a crypto wallet, secure your private keys, deal with exchange volatility, and risk losing your coins to hacks or mistakes. Even institutions stayed away. The U.S. Securities and Exchange Commission kept rejecting Bitcoin ETF applications, citing concerns about market manipulation and custody risks.

Then came Purpose Investments, a Toronto-based asset manager led by Som Seif. They didn’t ask for permission. They built the product, met every regulatory requirement, and submitted it to the Ontario Securities Commission (OSC). The OSC didn’t hesitate. On February 18, 2021, they approved the Purpose Bitcoin ETF (BTCC). It started trading on the Toronto Stock Exchange that same day under two tickers: BTCC.B for Canadian dollars and BTCC.U for U.S. dollars.

This wasn’t just another ETF. It was the first ever to hold physical Bitcoin - not futures, not derivatives, not proxies. Every share bought meant Purpose bought actual Bitcoin and stored it in cold storage with a regulated custodian. That’s the same way gold ETFs work. Investors weren’t betting on price swings. They were owning the asset.

Why Canada Pulled Ahead of the U.S.

The U.S. had been talking about a Bitcoin ETF for nearly a decade. But regulators kept saying no. Their main concern? Unregulated crypto exchanges. They didn’t trust the custody infrastructure. Canada didn’t wait for perfection. They built a system that worked.

The OSC required Purpose to use a licensed custodian - BitGo, a U.S.-based firm with strong compliance protocols. The fund’s structure was transparent. Daily net asset values were published. Market makers kept premiums tight by arbitraging price differences. Within three days, the ETF’s NAV premium was down to just 0.2%. That’s the kind of efficiency you only see in mature markets.

Meanwhile, the U.S. didn’t approve its first Bitcoin ETF until October 2021 - and even then, it was the ProShares Bitcoin Strategy ETF (BITO), which traded Bitcoin futures, not the actual coin. Futures are risky. They’re based on predictions, not ownership. They can diverge from spot prices. Canada’s ETF gave investors direct exposure. That’s why it became the global benchmark.

Investors Went Wild

The market didn’t just react - it exploded.

In the first two days, over $400 million worth of BTCC shares changed hands. Within 30 days, the fund hit $1 billion in assets under management. That’s faster than any ETF in history. By the end of its first week, Bitcoin ETFs in Canada had traded nearly $1 billion and gathered $600 million in assets. TD Securities called them the most actively traded ETFs in Canada that week.

Why? Because Canadians could now buy Bitcoin inside their TFSA and RRSP accounts. No more crypto wallets. No more exchange risk. No more tax headaches. You could hold Bitcoin in your retirement account like you would a stock or bond. That was revolutionary.

By February 2024, the Purpose Bitcoin ETF had over $2 billion in assets. It wasn’t just a flash in the pan. It became a core holding for retail investors, financial advisors, and even pension funds.

Other Canadian ETFs Followed - Fast

Purpose didn’t have the market to itself for long. The very next day, February 19, 2021, Evolve Investments launched its own Bitcoin ETF (ticker: EVOLVE). Then came CI Global Asset Management with the CI Galaxy Bitcoin ETF. By the end of 2021, Canada had three spot Bitcoin ETFs trading on the TSX.

Each one followed the same model: direct Bitcoin custody, daily NAV pricing, eligible for registered accounts. The competition kept fees low and liquidity high. Investors had choices. Regulators had proof. The market had legitimacy.

Loui Anastasopoulos of TMX Group called Purpose Investments a "true industry pioneer." He wasn’t exaggerating. Canada didn’t just launch a product. It created a new standard.

How It Influenced the World

The U.S. watched. Europe watched. Asia watched.

When the SEC finally approved spot Bitcoin ETFs in January 2024, they didn’t reinvent the wheel. They copied Canada’s playbook. The BlackRock iShares Bitcoin Trust (IBIT), the Fidelity Wise Origin Bitcoin Fund (FBTC), the Ark 21Shares Bitcoin ETF (ARKB) - they all used the same structure: direct custody, regulated custodians, daily transparency, and NAV arbitrage.

Som Seif said it best: "We’re now globally seeing others take what we innovated and bring that to their markets, and that’s really exciting to see." Canada didn’t just get first. They got it right. And the world followed.

What Makes a Bitcoin ETF Work?

Not all crypto investment products are equal. Here’s what made Canada’s ETFs different:

• Physical backing: Holds actual Bitcoin, not futures or derivatives
• Regulated custody: Uses licensed, insured custodians like BitGo
• Transparency: Daily NAV published, no hidden fees
• Eligibility: Can be held in TFSA, RRSP, RRIF
• Liquidity: Market makers keep spreads tight and premiums low
• Accessibility: Buy through any Canadian brokerage - no crypto app needed

Compare that to a Bitcoin futures ETF - which tracks price predictions, not the real asset - or a crypto trust, which often trades at massive premiums and lacks liquidity. Canada’s model eliminated all those problems.

Why This Still Matters in 2026

Three years later, the Purpose Bitcoin ETF remains one of the largest spot Bitcoin ETFs globally. It’s not just a product. It’s proof that regulated finance and digital assets can coexist.

For investors, it means you can now access Bitcoin the same way you access Apple or Tesla. No tech skills needed. No wallet security worries. No tax confusion. Just buy, hold, and forget.

For regulators, it showed that innovation doesn’t require chaos. You can protect investors without killing progress.

For the world, it proved that leadership in finance isn’t about size - it’s about courage. Canada didn’t have Wall Street’s clout. But it had clarity. And that’s what changed everything.