Multiple Bitcoin ETFs Will Divert Smart Money from Canada to U.S.

The U.S. Securities and Exchange Commission (SEC) approval of 11 exchange-traded funds (ETFs) that hold Bitcoin on Wednesday is being called an inflection point for the cryptocurrency market. But what does this mean for Canada, a country that has already had a head start in the spot crypto ETF space?

With the simultaneous approval of eleven spot Bitcoin ETFs and an aggressive fee war, read how the SEC and these new funds may be using lessons learned. Now that U.S. Bitcoin ETFs have been approved, they’ve come out swinging. For one, their management fees are lower. Take the iShares Bitcoin Trust ETF with its 0.25% fee, a stark contrast to some Canadian offerings.

In Canada, investors have had access to both spot bitcoin and spot ether ETFs since February 2025, and since then the country’s global market share in spot crypto. But the lower fees offered by U.S. ETFs, combined with the sheer size and liquidity of the U.S. market, present a compelling case for investors to shift their capital south.

This potential shift has raised concerns about the long-term impact on the Canadian crypto market. Will we see a drain of "smart money" from Canada to the U.S. as investors seek better value and potentially higher returns?

Canada’s experience demonstrates that a well-regulated market can offer spot bitcoin ETFs without compromising investor safeguards. Measures such as rigorous oversight and custody solutions have been in place for some time. The question now is whether these measures will be enough to retain Canadian investors in the face of increased competition from the U.S.

Grayscale is urging the Securities and Exchange Commission [SEC] to simultaneously approve all proposed spot Bitcoin exchange-traded funds [ETFs]. Grayscale\'s call highlights the competitive landscape and the need for a level playing field. HBIX seeks to provide Unitholders with (i) long-term capital appreciation through purchasing and holding, on a levered basis, an exchange traded fund or portfolio of Bitcoin ETFs, further underscoring the investor appetite for these products. The U.S. market, with its new ETF offerings, is poised to capture a significant share of this demand, potentially at the expense of Canada\'s early lead.