The world’s first Bitcoin exchange-traded fund didn’t launch in New York. It didn’t even start in Europe. It opened for trading on the Toronto Stock Exchange on February 18, 2021. That day, Canadian investors could buy shares of a fund that held actual Bitcoin - not futures, not derivatives, not wrapped tokens. Just Bitcoin, stored securely and tracked in real time. This wasn’t a test. It wasn’t a pilot. It was the real thing. And it changed everything.
The Moment Canada Led the World
Before February 2021, if you wanted to invest in Bitcoin through a regulated, tax-advantaged account in Canada, you had to set up a crypto wallet, manage private keys, and deal with exchange risks. Many people didn’t. Others couldn’t. Retirement accounts like RRSPs and TFSAs didn’t allow direct crypto holdings. So, the only way to get exposure was through risky, unregulated platforms - or not at all. Then came Purpose Bitcoin ETF (BTCC). Created by Toronto-based Purpose Investments, led by CEO Som Seif, this ETF was structured to hold physical Bitcoin. Every share bought meant Purpose bought real Bitcoin on the open market and stored it in cold storage with a licensed custodian. No middlemen. No leverage. No futures contracts. Just direct ownership. The Ontario Securities Commission approved it. That approval wasn’t just paperwork. It was a signal: Bitcoin could be treated like gold or oil - an asset that could be held in regulated investment vehicles. For the first time, a major financial regulator said: This is real. This is safe. This belongs in your portfolio.How It Worked - And Why It Was Different
Most Bitcoin products before this were either unregulated exchanges or futures-based ETFs. The U.S. wouldn’t approve a spot Bitcoin ETF for another 20 months. Europe had Bitcoin ETPs, but they weren’t true ETFs - they didn’t have the same creation/redemption mechanics, and they often used derivatives. The Purpose Bitcoin ETF worked like this:- Investors bought shares on the TSX - just like buying Apple or Shopify stock.
- For every share purchased, Purpose bought an equivalent amount of Bitcoin.
- Bitcoin was stored offline in secure vaults by a regulated custodian.
- NAV (net asset value) stayed within 0.2% of Bitcoin’s actual price thanks to market makers who arbitrated premiums.
- Investors could hold it in RRSPs, TFSAs, and other registered accounts.
Market Reaction: A Record-Breaking Surge
The demand didn’t just meet expectations - it shattered them. Within 48 hours of launch, the ETF traded over C$400 million in volume. By the end of its first month, it had gathered more than C$1 billion in assets under management. That made it the fastest-growing ETF in history at the time. Data from TD Securities showed that Bitcoin ETFs collectively traded nearly C$1 billion in their first week. The Purpose fund alone accounted for over 80% of that. By February 2024 - three years later - it held over C$2 billion in assets. That’s more than most gold ETFs in Canada. It wasn’t just retail investors. Pension funds, family offices, and even banks started using it as a core holding. Why? Because it was simple, transparent, and regulated.
The Ripple Effect: Canada’s Influence on the World
The U.S. Securities and Exchange Commission had been dragging its feet on Bitcoin ETFs for years. Their main concern? The lack of regulated Bitcoin markets. They didn’t trust the underlying asset. Canada proved them wrong. By showing that Bitcoin could be held securely, tracked accurately, and integrated into traditional financial systems, Purpose Investments gave the SEC a working model. When the U.S. finally approved Bitcoin ETFs in October 2021, the first one - the ProShares Bitcoin Strategy ETF (BITO) - was based on futures contracts. It didn’t hold Bitcoin. It bet on its price. That meant tracking errors, roll costs, and higher fees. By 2024, when U.S. spot Bitcoin ETFs finally launched, they copied Canada’s structure almost exactly: direct custody, transparent NAV, creation/redemption mechanics. The playbook? Written in Toronto. Even Europe started rethinking its approach. Countries like Germany and Switzerland began exploring spot Bitcoin ETFs - not because they changed their minds, but because Canada had already shown it could be done safely.What Came Next: Canada’s Second Wave
Just one day after Purpose’s launch, Evolve Bitcoin ETF hit the market. It followed the same model: direct Bitcoin ownership, eligible for RRSPs and TFSAs. Within weeks, two more Bitcoin ETFs launched - one from 21Shares and another from CI Investments. Suddenly, Canada had four Bitcoin ETFs trading on the TSX. No other country had more than one. And none had the same level of regulatory clarity. This wasn’t luck. It was strategy. The OSC had been quietly working with industry players for over a year. They asked questions. They tested custody solutions. They demanded transparency. And they didn’t back down.
Why This Matters Today
By 2026, Bitcoin ETFs are now a global phenomenon. The U.S. has over a dozen. Europe has several. Even Japan and Singapore have launched their own. But none of them would have existed - at least not so quickly - without Canada. The Purpose Bitcoin ETF didn’t just give people a way to buy Bitcoin. It gave them confidence. It proved that:- Regulators can keep up with innovation.
- Crypto assets can be held securely.
- Investors will embrace them when they’re simple and safe.
Legacy of a First-Mover
Som Seif once said, “We’re now globally seeing others take what we innovated and bring that to their markets.” That’s not bragging. It’s fact. Canada didn’t just approve a Bitcoin ETF. It redefined what’s possible. It showed that financial systems don’t have to choose between tradition and innovation. They can do both. Three years after its launch, the Purpose Bitcoin ETF remains one of the most trusted ways to own Bitcoin. Its structure is still the gold standard. And its approval - on February 18, 2021 - remains one of the most important moments in crypto history. It wasn’t just a product. It was a turning point.Was the Purpose Bitcoin ETF the first Bitcoin ETF in the world?
Yes. The Purpose Bitcoin ETF (BTCC), launched on February 18, 2021, on the Toronto Stock Exchange, was the world’s first physically-backed Bitcoin ETF available to retail investors. While Europe had Bitcoin exchange-traded products (ETPs), they were not true ETFs - they lacked the creation/redemption mechanism and often used derivatives. Canada’s ETF held actual Bitcoin, making it the first of its kind.
How is the Purpose Bitcoin ETF different from U.S. Bitcoin ETFs?
The Purpose Bitcoin ETF holds actual Bitcoin in secure custody, while the first U.S. Bitcoin ETF (ProShares BITO, launched in October 2021) only held Bitcoin futures contracts. Futures-based ETFs don’t own Bitcoin - they bet on its price, leading to tracking errors and higher costs. U.S. spot Bitcoin ETFs launched in 2024 copied Canada’s structure, proving the Canadian model was the right one.
Can I hold a Bitcoin ETF in my TFSA or RRSP in Canada?
Yes. One of the biggest advantages of Canadian Bitcoin ETFs is that they’re eligible for registered accounts like TFSAs and RRSPs. This means you can invest in Bitcoin with tax-free growth (TFSA) or tax-deferred contributions (RRSP), just like you would with stocks or mutual funds. Direct Bitcoin purchases through exchanges are not eligible.
Why did the Ontario Securities Commission approve it when others didn’t?
The OSC worked closely with Purpose Investments for over a year to address custody, transparency, and investor protection concerns. They required third-party audits, insured cold storage, and real-time NAV tracking. By setting clear standards and enforcing them, they created a safe framework. Other regulators, like the U.S. SEC, waited to see how it performed - and Canada’s success gave them the confidence to follow.
How much Bitcoin does the Purpose ETF hold today?
As of February 2024, the Purpose Bitcoin ETF held over C$2 billion in assets. At Bitcoin prices around $65,000, this translated to roughly 30,000-32,000 BTC. The fund continues to be one of the largest spot Bitcoin ETFs globally, with daily trading volumes often exceeding C$100 million.