EZBC: Franklin Bitcoin ETF In Canada

What Is EZBC?

EZBC is one of the US spot Bitcoin ETFs that began trading in January 2024. It holds actual Bitcoin and tries to match its price, minus the fund's expenses. You buy and sell units through a brokerage, like any stock, and you never touch a wallet or a private key.

That convenience is the whole product. You trade the fund during stock market hours, and you can hold it in an account that you already have. The trade-off is that you do not own Bitcoin, and you cannot send it anywhere.

Can Canadians Buy EZBC?

Yes, if the brokerage offers US-listed ETFs. Canadians can reach more than 30 US-domiciled crypto ETFs this way, according to Morningstar, but the choice depends on your broker, so check that EZBC appears in your account before you plan around it. Two practical points. You will need US dollars, and converting from Canadian dollars costs money. And you may see EZBC in a US-dollar account only, with no Canadian-dollar version.

EZBC Or Bitcoin Directly: Which Costs Less?

These costs work differently. The ETF fee is charged every year you hold. An exchange fee is charged when you trade. For a long hold, a 0.19% annual fee can cost more than a one-off 0.20% trade after a few years. For a short trade, the ETF can be cheaper. Do the arithmetic on your own holding period, and remember that I only compare published figures here.

How Is EZBC Taxed In Canada?

For most investors, selling a fund unit for more than you paid is a capital gain, and half of a capital gain is included in income under the CRA's current rules. Gains and the cost of currency conversion are calculated in Canadian dollars. Keep your trade confirmations. If the units sit in a TFSA or RRSP, check with your brokerage whether a US-listed fund is held there and how withholding works, because I have not verified that and it varies by account. My crypto taxation guide covers the direct-Bitcoin side.

Who Should Consider EZBC, And Who Should Skip It?

EZBC suits someone who already invests through a brokerage, wants Bitcoin price exposure in the same account as their other holdings, and does not care about holding coins. It also suits people who find wallets and recovery phrases stressful, since the fund removes that risk entirely. It does not suit anyone who wants to spend Bitcoin, send it, use Lightning, stake anything or move it into self-custody. If any of those is your goal, a registered exchange is the better tool, and my guide to buying cryptocurrency in Canada compares them.

How Do You Buy A US-Listed ETF From Canada?

1. Check your brokerage carries EZBC. Not every Canadian broker offers US-listed crypto ETFs.
2. Open or use a US-dollar account. Buying a US-listed fund needs US dollars, and converting Canadian dollars costs a spread or a fee, so look at the rate your broker shows.
3. Place the order during US market hours. A limit order sets the maximum you will pay.
4. Record the Canadian-dollar value. The CRA needs your cost and proceeds in Canadian dollars for Schedule 3.
5. Decide how you will sell. Selling returns US dollars, and converting back costs again.

What Are The Risks Of A Spot Bitcoin ETF?

Price risk comes first: the fund falls when Bitcoin falls, and Bitcoin has had large drops. Fee drag comes second, since 0.19% a year is small but permanent. Third is index risk. Franklin's own disclosure language says the index price used to value the fund's Bitcoin has a limited performance history and may be volatile. Fourth is access: you can trade only when the market is open, and you cannot withdraw the coins. A fifth risk is specific to Canadians: US-listed funds can bring US tax rules into your estate, such as US estate tax on non-residents holding US-situs assets, which the Canada-US tax treaty can reduce. That is a question for a cross-border advisor, and my crypto estate planning guide explains why it matters.

How Does EZBC Compare With Canadian-Listed Bitcoin ETFs?

Canada approved spot Bitcoin ETFs in 2021, years before the US, so there are Canadian-listed alternatives that trade in Canadian dollars on the TSX. That removes the currency conversion and keeps the holding in a Canadian account. I list them on my Bitcoin ETFs in Canada page. I did not verify their current fees for this fact sheet, so I will not quote a comparison here. The test is simple: add the fund fee, any currency cost and your brokerage's commission over the years you plan to hold, then compare it with buying Bitcoin directly.

Is EZBC Worth Owning Next To Other Bitcoin Holdings?

If you already hold Bitcoin on an exchange, adding EZBC doubles your exposure to the same asset, with a different set of risks. That is fine if it is deliberate. It is not diversification. One sensible split is a small ETF position for long-term savings and a smaller amount of coins on an exchange for use, but that is a preference and not a rule. Decide the purpose of each holding before you buy, and remember that the 0.19% fee is charged on the whole position every year, so a fund you forget about still costs you money.

Finally, check the fund's current fact sheet before you buy, because fees, custody arrangements and the reference index can change after launch, and the figures on this page reflect Franklin Templeton's published launch terms.