iTrustCapital makes it easy to hold cryptocurrency in tax-advantaged accounts in the U.S. But is it available in Canada?
What are some of iTrustCapital Canada alternatives? Read on to find out.
About iTrustCapital
iTrustCapital is a U.S. based digital asset IRA trading platform that was launched in late 2019.
Through the iTrustCapital platform, retail investors can hold and trade Gold, Silver, Bitcoin and other cryptocurrencies in their tax-advantaged retirement accounts.
Its crypto IRA platform has enjoyed wide success and reached $1 billion in total assets with over $300 million new deposits in Q1 2021 alone. With that feat, it is the world’s largest crypto retirement account platform.
Getting started is easy. Simply open a new IRA, contribute new funds or transfer an existing IRA and start trading 24/7. The minimum opening amount is $2,500 and $1,000 for additional contributions.
IRAs (Traditional and Roth) are the U.S. equivalent of Registered Retirement Savings Plan (RRSP) and Tax-free Savings Account (TSFA) in Canada.
iTrustCapital Features
The biggest selling point of iTrustCapital is that it allows crypto and commodities to be held in tax-advantaged accounts. In addition, investors also get the following features:
Transparent & Lower Pricing
Trading crypto assets attract a fee of 1%. Gold has a $50 spread over the spot price per ounce and Silver’s spread is $2.50 over the spot price.
In addition, there’s a monthly account fee of $29.95.
24/7 Availability
You can trade on the platform any time during the day from your personal client dashboard.
Safe and Secured Storage
The precious metals bought on the platform are held at the Royal Canadian Mint, while the crypto assets are secured by Curv.
The Royal Canadian Mint is a Canadian Crown corporation that is responsible for minting and distribution circulation coins. Curv is a digital asset security platform that was acquired by PayPal in early 2021.
Good Selection of Cryptocurrency
In addition to Bitcoin and Etherum, the 2 most popular and capitalized cryptocurrencies, investors also have access to other altcoins. These include Cardano, Polkadot, Litecoin, Chainlink, Bitcoin Cash, Stellar, EOS, Uniswap and Compound.
Is iTrustCapital Available in Canada?
Unfortunately, iTrustCapital is not available in Canada. Also, there are no exchanges that allow cryptocurrencies to be bought in a tax-deferred or tax-sheltered account in Canada for now.
According to CRA rules on eligible securities, only securities that trade on a designated stock exchange can be held in a TFSA or RRSP. And only the Minister of Finance can make the designation.
That means we may not be seeing a similar platform anytime soon.
Alternatives to iTrustCapital in Canada
iTrustCapital may not be available in Canada for now, but here are some alternatives for investors looking to invest in cryptocurrencies.
- Bitcoin ETFs
- Ether ETFs
- Cryptocurrency Exchanges and Apps
Bitcoin ETFs
The first Bitcoin ETF in Canada was introduced in February, 2021 by Purpose Investments. Since then, 3 additional bitcoin ETFs have been introduced.
- Purpose Bitcoin ETF (BTCC)
- 3iQ CoinShares Bitcoin ETF (BTCQ)
- Ninepoint Bitcoin ETF (BITC)
- Evolve Bitcoin ETF (EBIT)
These ETFs have been widely adopted, with Purpose Bitcoin ETF and 3iQ Coinshares Bitcoin ETF crossing the $1 billion mark in under a month.
Learn more: Best Bitcoin ETFs in Canada
Ethereum ETFs
Following the introduction and successful launch of the bitcoin ETFs, Ether ETFs were also introduced in April 2021. We now have 4 ETFs from the ETF providers.
- CI Galaxy Ethereum ETF (ETHX)
- Purpose Ether ETF (ETHH)
- Evolve Ether ETF (ETHR)
- 3iQ CoinShares Ether ETF (ETHQ)
All the crypto ETFs are listed on the Toronto Stock Exchange and can be traded in both USD and CAD. A few of them are even available as hedged to eliminate the FX risk.
Learn more: Best Ether ETFs in Canada
Crypto Exchanges
Canadians have access to several crypto exchanges and trading apps. Many of the crypto platforms support bitcoin, Ethereum and a handful of other altcoins.
But any account you open with them is non-registered or taxable. That means you’ll need to keep track of all your trades and calculate gains/losses when you sell.
At the moment, none of them – including Wealthsimple Crypto- supports registered accounts like RRSP and TSFA.
Some of the best crypto exchanges in Canada are:
- Wealthsimple Crypto ($10 bonus)
- NDAX ($10 bonus)
- Newton ($25 bonus)
- CoinSmart ($20 bonus)
- Netcoins ($10 Bonus)
- Coinberry ($20 bonus)
Related: Best Apps To Buy Bitcoin In Canada
Final Thoughts
Canada may not have an investing platform that allows them hold bitcoin and other crypto assets in their TSFA or RRSP yet, but they are other options to start investing in the new asset class.
Crypto ETFs are a good alternative and quick way to start investing in bitcoin and ether.
But remember that crypto assets are very speculative and volatile. So only allocate a small portion of your portfolio to them.
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