Bitcoin and RRSP in Canada

Can you hold Bitcoin in an RRSP? The short answer: not directly.

But there are options for getting Bitcoin exposure in registered accounts.

Bitcoin ETFs CAN Go in an RRSP

Canada’s Bitcoin ETFs — available on the Toronto Stock Exchange — can be held in registered accounts:

– Purpose Bitcoin ETF (BTCC) — largest Canadian Bitcoin ETF
– Fidelity Advantage Bitcoin ETF (FBTC) — lower MER
– CI Galaxy Bitcoin ETF (BTCX) — another option

These are available through most Canadian brokerages (Questrade, TD Direct, RBC Direct, Wealthsimple, etc.).

Note: Bitcoin ETFs give you price exposure but not actual Bitcoin ownership. You can’t withdraw Bitcoin from an ETF.

Directly Held Bitcoin Cannot Go in an RRSP

Directly purchased Bitcoin (like what you buy at 1Bitcoin.ca) cannot be held in an RRSP, TFSA, or other registered Canadian account. This is because Bitcoin is not a “qualified investment” under the Income Tax Act.

Why Many Canadians Choose Real Bitcoin Over ETFs

Actual ownership:

When you buy Bitcoin at 1Bitcoin.ca, you own Bitcoin. With an ETF, you own a financial product that tracks Bitcoin's price.

No management fees:

Bitcoin ETFs charge 0.20-1.00% annually. Directly held Bitcoin has no ongoing fees.

Self-custody:

You can store real Bitcoin in your own hardware wallet. An ETF is held by the fund.

The 2022 lesson:

Custodial platform failures took customer Bitcoin. Bitcoin ETF holders were fine because their exposure was through regulated investment funds. But self-custody Bitcoin holders were also unaffected — because they held their own keys.

A Common Strategy

Many Canadian Bitcoin investors hold both:

– Bitcoin ETF inside RRSP/TFSA for tax-sheltered growth exposure
– Real Bitcoin in self-custody for long-term savings and true ownership

Frequently Asked Questions

Can I hold Bitcoin in a TFSA?

Not directly held Bitcoin. Bitcoin ETFs can be held in a TFSA.

What are the tax advantages of a Bitcoin ETF in RRSP?

Growth inside an RRSP grows tax-deferred. Withdrawals are taxed as income. For TFSA, growth is tax-free.

Is there a better alternative to RRSP for Bitcoin?

Some argue that holding Bitcoin in a non-registered account with a long-term buy-and-hold strategy is superior, since capital gains at the 50% inclusion rate may be more favorable than RRSP income inclusion. Consult a tax advisor.

View All FAQs

Buy Real Bitcoin at 1Bitcoin.ca →

FINTRAC Registered MSB | Non-Custodial | Bitcoin-Only | 20,000+ Canadians Served | 4.8★ Google Reviews