Bitcoin has spent much of 2025 hitting record highs, and garnering renewed interest from investors. The question for many Canadians is not whether Bitcoin deserves a place amongst their portfolios, but how best to access it with balance and ease. For those new to the crypto scene, an exchange-traded fund (ETF) may be a great way to get in on the action.
“Investing in Bitcoin is rather arduous for the average person. You have to open a crypto wallet, learn the ins and outs, and maintain your keys. With an ETF, you get that same exposure without the shenanigans,” says Alexander Smahtin, portfolio manager and senior analyst at Global X Canada.
The Global X Bitcoin Covered Call ETF BCCC and the Global X Enhanced Bitcoin Covered Call ETF BCCL both provide physical Bitcoin exposure, with a covered-call overlay for income and risk control.
A covered-call strategy sells options on assets the fund already holds. In essence, the fund sells the right for someone else to buy the asset at a set price in the future, and earns a premium in return for giving up some potential upside. This provides an extra source of income that helps smooth returns and reduces the impact of choppy markets.
Ten years ago, the cryptocurrency traded around USD$250, and nowadays it’s fetching more than USD$125,000. While Bitcoin has had massive swings since its debut 16 years ago, that level of volatility also brings opportunity, explains Mr. Smahtin.
“Bitcoin’s higher volatility compared to gold or tech stocks means we can potentially generate higher yield from the option overlay.”
He says that, as with any covered call, growth is capped on the covered portion. “But we monetize Bitcoin’s volatility to pay out a tax-efficient yield to investors.”
By wrapping Bitcoin in a well-known, regulated ETF wrapper, investors can also dismantle some of the complexity.
“There is a level of comfort in knowing a Bitcoin ETF has gone through all the regulatory steps to be listed on the Canadian stock exchanges,” says Mr. Smahtin.
BCCL takes the same basic approach but adds a small level of borrowing in the hopes of boosting returns up to 25 per cent. This option is suited to investors with greater risk tolerance, who want enhanced participation without managing leverage themselves.
“It is naturally a riskier investment, but you get more yield for it,” says Mr. Smahtin.
Another feature that sets these ETFs apart is their income schedule. Instead of the typical monthly distributions, both pay semi-monthly. That makes for more frequent and predictable cash flow.
While Bitcoin has inherent volatility, it’s also the key cryptocurrency for Canadian investors. The Global X solutions provide a simple, income-generating entry point for investors who may be unsure but want to test the waters.
Andreas Park, a professor of finance at the University of Toronto, describes Bitcoin as “fascinating – but far from perfect”. He notes the impressive cybersecurity surrounding the cryptocurrency, but remains cautious about its long-term role.
For many, Bitcoin functions as a small side investment, taking up typically one to five per cent of a diversified portfolio. Interest is evolving, as even institutions are considering it in small allocations, says Mr. Smahtin.
“Bitcoin has grown up a lot over the last decade. It has gone from being a mysterious experiment to something that can fit neatly inside a traditional portfolio. It will always have volatility, but that’s also what gives it potential. So for investors who want exposure without the chaos, an ETF like this makes it manageable.”
Advertising feature produced by Globe Content Studio with Global X Funds. The Globe’s editorial department was not involved.
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Commissions, management fees, and expenses all may be associated with an investment in products (the “Global X Funds”) managed by Global X Investments Canada Inc. The Global X Funds are not guaranteed, their values change frequently and past performance may not be repeated. Certain Global X Funds may have exposure to leveraged investment techniques that magnify gains and losses which may result in greater volatility in value and could be subject to aggressive investment risk and price volatility risk. Such risks are described in the prospectus. The prospectus contains important detailed information about the Global X Funds. Please read the relevant prospectus before investing.
The Global X Bitcoin Covered Call ETF (BCCC) and the Global X Enhanced Bitcoin Covered Call ETF (BCCL) are each exchange traded alternative mutual funds that invest in other alternative mutual funds that invest, directly or indirectly, in Bitcoin. There are inherent risks associated with products linked to crypto assets, including Bitcoin Futures. While Bitcoin Futures are traded on a regulated exchange and cleared by regulated central counterparties, direct or indirect exposure to the high level of risk of Bitcoin Futures will not be suitable for all types of investors. Given the speculative nature of bitcoin and the volatility of the digital currency markets, there is no assurance that BCCC or BCCL will be able to meet their respective investment objectives. An investment in BCCC or BCCL is not intended as a complete investment program and is appropriate only for investors who have a sophisticated knowledge and understanding of Bitcoin and the capacity to absorb a loss of some or all of their investment. An investment in either BCCC or BCCL is considered high risk.
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