Bitcoin Structured Products in Canada
Canada's first institutional Bitcoin structured credit product is now available. Here's what institutional allocators need to know.
BTC Inc. Product 001 — Canada's First Bitcoin Credit Note
Structure: Senior secured note
Collateral: Bitcoin held by institutional custodian
Coupon: 8% fixed annual
Payment: Interest prepaid at origination
Term: 1 year
Minimum: $100,000 CAD
Eligible investors: Accredited investors (exempt market)
How It Works
BTC Inc. issues senior secured notes to accredited investors
Proceeds are secured by Bitcoin collateral (held by Balance Trust)
Investors receive interest payment at origination (day one)
At maturity, principal is returned
If Bitcoin value falls below coverage thresholds, margin protocols activate
The Four Collateral Coverage Tiers
| Tier | Coverage Ratio | Status |
|---|---|---|
| Tier 1 | 1.50x | Full comfort zone |
| Tier 2 | 1.30x | Monitoring |
| Tier 3 | 1.20x | Alert |
| Tier 4 | 1.10x | Margin call threshold |
At current Bitcoin valuations, Product 001 represents significant overcollateralization.
Series 1: Pure Reserve-Backed
Series 1 is pure reserve-backed — no loan deployment. The Bitcoin collateral sits in institutional custody, providing a clean, conservative first-series structure.
Why 8% Fixed on Bitcoin Collateral?
For fixed-income allocators: In a compressed yield environment, 8% fixed with hard asset collateral is compelling.
The collateral premium: Bitcoin’s 24/7 liquidity, global price discovery, and absolute scarcity justify a yield premium over traditional secured lending.
First-mover advantage: Series 1 investors are ground-floor creditors in Canada’s first Bitcoin credit market.
Who Should Invest
- Family offices seeking alternative fixed income
- HNW investors with Bitcoin exposure looking for yield on collateral
- Institutional allocators with alternative credit mandates
- Bitcoin believers who want 8% on their conviction
- FINTRAC Registered MSB
- Non-Custodial
- Bitcoin-Only
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