The Diversified Cryptocurrency ETF Portfolio (TFSA/FHSA/RRSP Eligible)

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As digital assets continue to gain mainstream traction, investors are increasingly looking for simple, secure, and tax-efficient ways to gain exposure to cryptocurrencies like Bitcoin, Ethereum, and Solana. While the crypto purist mantra “not your keys, not your coins” holds merit, the reality is that self-custody wallets and complex exchange platforms can be intimidating—or even inaccessible—for many.

Enter cryptocurrency ETFs. These exchange-traded funds offer a streamlined, regulated, and accessible path to investing in digital assets without the technical hurdles of private key management or exchange trading. Canada has emerged as a global leader in this space, launching the world’s first spot Bitcoin ETF and expanding into Ethereum and Solana-based ETFs well ahead of markets like the U.S.

This article explores a diversified cryptocurrency ETF portfolio designed for Canadian investors seeking exposure to the top three most investable digital assets—Bitcoin, Ethereum, and Solana—through a balanced, tax-advantaged strategy. Best of all, this portfolio can be held in registered accounts such as TFSA, RRSP, or FHSA, enabling tax-free or tax-deferred growth over time.

Core Keywords

Building a Balanced Crypto ETF Portfolio

The foundation of this portfolio is strategic diversification across the three most established and functionally distinct cryptocurrencies: Bitcoin as digital gold, Ethereum as a smart contract platform, and Solana as a high-performance blockchain. By allocating across these assets via ETFs, investors gain exposure while benefiting from regulatory oversight, custodial security, and ease of trading.

Here’s the recommended allocation:

This weighting reflects market maturity, adoption trends, and risk profile—giving stability through Bitcoin while allowing upside from Ethereum’s utility and Solana’s innovation.

👉 Discover how to start building your tax-efficient crypto portfolio today.

Spot Bitcoin ETF: The Foundation of Digital Asset Investing

At the core of this portfolio is the Purpose Bitcoin ETF (BTCC), allocated 75% of the total investment. As the world’s first spot Bitcoin ETF, BTCC set a critical precedent in 2021, proving that institutional-grade crypto access could exist within traditional financial frameworks.

With over $2.9 billion in assets under management (AUM) and approximately 21,871 BTC held in cold storage, BTCC offers full transparency and 1:1 backing. This means every share represents direct ownership of physically held Bitcoin—no futures contracts or synthetic exposure.

One key feature of this ETF is its currency-hedged structure. Since Bitcoin trades globally in U.S. dollars but the ETF is listed in Canadian dollars, BTCC mitigates foreign exchange risk. This allows investors to gain pure price exposure to Bitcoin without being affected by CAD/USD fluctuations.

For those comfortable with currency exposure or looking to avoid hedging costs, an unhedged version (BTCC.B) is also available.

While the 1.31% management expense ratio (MER) may seem high compared to traditional index ETFs, it’s competitive when weighed against typical exchange fees, bid-ask spreads, and security risks involved in direct crypto trading.

Bitcoin’s role in this portfolio is clear: long-term store of value, macro hedge, and foundational digital asset.

Spot Ethereum ETF: Accessing the Smart Contract Ecosystem

Allocating 20% to the Purpose Ether ETF (ETHH) provides exposure to Ethereum—the backbone of decentralized innovation.

With $245 million in AUM, ETHH may not match BTCC in size, but it plays a vital role. It holds 97,891.52 ETH in cold storage and operates under the same trusted custodial framework as its Bitcoin counterpart.

Unlike Bitcoin, Ethereum is not just a store of value—it’s a programmable blockchain that powers decentralized finance (DeFi), non-fungible tokens (NFTs), tokenized real-world assets, and Web3 applications. This functional utility gives Ethereum long-term growth potential beyond speculative price movements.

Each share of ETHH has a net asset value (NAV) of $7.02, with roughly 358.9974 shares equaling one ether. Like BTCC, it carries a 1.31% MER and offers a currency-hedged structure by default. Investors seeking unhedged exposure can opt for ETHH.B.

Ethereum’s recent performance may lag behind Bitcoin, but its ecosystem remains the most developed in crypto—making it a strategic complement to any serious digital asset portfolio.

👉 Learn how to diversify into next-generation blockchain networks with ease.

Spot Solana ETF: High-Speed Innovation with Staking Yield

The final 5% allocation goes to the Purpose Solana ETF (SOLL)—a forward-looking addition that taps into one of crypto’s fastest-growing ecosystems.

Launched in April 2025, SOLL was among the first spot Solana ETFs available to Canadian investors. Though still small with $13 million in AUM**, it holds **61,998.33 SOL** in cold storage and offers NAV-backed pricing at **$11.80 per SOL, with about 17.8 shares per SOL.

What makes SOLL stand out? Native staking capability.

Unlike most crypto ETFs that simply hold assets passively, SOLL actively stakes its Solana holdings on the network. This generates staking rewards, which accrue directly to the fund’s net asset value—potentially boosting returns over time without additional investor effort.

Additionally, SOLL boasts a remarkably low 0.39% management fee, significantly undercutting typical crypto ETF costs. The official MER will be finalized after one year of operation, but early indications suggest strong cost efficiency.

Solana itself has gained momentum due to its high throughput, low fees, and growing DeFi and consumer app ecosystem—making it a compelling satellite holding in a diversified crypto strategy.

Frequently Asked Questions (FAQ)

Q: Can I hold these cryptocurrency ETFs in my TFSA?
A: Yes. All three ETFs—BTCC, ETHH, and SOLL—are eligible for TFSA accounts. This allows your gains to grow completely tax-free, making them ideal for long-term compounding.

Q: Are these ETFs also RRSP and FHSA eligible?
A: Absolutely. These funds are registered with Canadian securities regulators and can be held in RRSPs and the newer First Home Savings Account (FHSA), offering tax-deferred or tax-free growth depending on the account type.

Q: What’s the difference between hedged and unhedged versions?
A: Hedged versions (e.g., BTCC) eliminate exposure to U.S. dollar fluctuations, giving you pure crypto price exposure. Unhedged versions (e.g., BTCC.B) retain currency risk but may avoid hedging-related costs.

Q: How do I buy these ETFs?
A: You can purchase them through any major Canadian brokerage platform—just like stocks or traditional ETFs—using their ticker symbols: BTCC, ETHH, SOLL.

Q: Is there any risk of losing my crypto if the fund goes bankrupt?
A: The assets are held in cold storage by independent custodians. In most cases, investor holdings are protected even in insolvency scenarios—similar to how traditional ETF assets are safeguarded.

Q: Why include Solana with only 5%?
A: Solana is more volatile and less mature than Bitcoin or Ethereum. A small allocation allows exposure to high-growth potential while managing risk within a balanced portfolio.

👉 See how you can start investing in crypto the smart, tax-efficient way.

By combining Bitcoin’s stability, Ethereum’s utility, and Solana’s innovation through purpose-built ETFs, this portfolio delivers a modern approach to digital asset investing—one that aligns with both financial goals and regulatory realities.

Whether you're building wealth over decades or optimizing for tax efficiency in registered accounts, this diversified cryptocurrency ETF strategy offers a practical entry point into the future of finance—without needing to manage private keys or navigate complex exchanges.