9. Tax & Reporting Notes (Canada)
TFSA
- All gains are tax-free
- Perfect for long-term Bitcoin compounding
RRSP
- Gains tax-deferred
- Taxed on withdrawal like normal RRSP rules
Non-Registered / Margin
- Capital gains taxable when sold
- Losses can offset other gains
Kids’ Accounts
- Taxation depends on ownership structure
- Set up correctly to avoid attribution issues
10. Risk Checklist (Read Carefully)
Bitcoin ETFs come with real risks:
✔ Volatility:
Prices can drop 30–70%.
✔ Custody risk:
ETFs rely on third-party custodians. (Read custody statements.)
✔ Liquidity:
Spreads may widen during market stress—use limit orders.
✔ Regulation:
Crypto rules can change.
✔ Emotional risk:
High volatility can cause panic selling if not sized properly.
11. Final Recommendation (Simple & Actionable)
If you want a straightforward, long-term, low-cost Bitcoin ETF strategy in Canada:
1. Use FBTC (Fidelity) for your TFSA
Best fee + clean structure.
2. Use BTCX.B if you prefer higher liquidity
Ideal for frequent traders.
3. For kids’ accounts
Tiny allocation (1–3%), spot ETFs only.
4. Use DCA to reduce timing risk
Starter buy today → spread remaining buys over 3–4 months.
5. Keep Bitcoin allocation modest
1–3% conservative
3–5% moderate
5–10% aggressive (rarely suitable)
