How to Choose the Right Purpose Bitcoin ETF: BTCY.B, BTCY.U, and BTCO.B (Fees, Yield & Strategy Compared)
Understanding Purpose Bitcoin ETFs: Yield vs. Core
Choosing the right Bitcoin ETF from Purpose Investments depends on two main factors: whether you want pure exposure versus monthly income, and which currency you prefer to trade in.
BTCY (Yield Series)
Uses a covered-call strategy. It sells potential “upside” profit to generate cash for monthly dividends. Ideal for income-seekers.
BTCO (Core Series)
A “buy and hold” spot ETF. It tracks the price of Bitcoin as closely as possible with no options trading. Best for long-term growth.
Comparison Table
| Symbol | Strategy | Currency | Hedged? | Mgmt Fee |
|---|---|---|---|---|
| BTCY | Yield / Covered Call | CAD | Yes | 1.10% |
| BTCY.B | Yield / Covered Call | CAD | No | 1.10% |
| BTCY.U | Yield / Covered Call | USD | No | 1.10% |
| BTCO.B | Spot / Growth | CAD | No | 0.29% |
Note on Fees: The Management Expense Ratio (MER) is usually slightly higher than the base fee once taxes and expenses are added. Expect BTCY to land around 1.25% – 1.45%, while BTCO.B remains the low-cost leader at approx 0.40%.
Which one should you choose?
- For Income: Choose BTCY if you want monthly cash flow and are willing to cap your gains.
- For Growth: Choose BTCO.B for the lowest fees and pure Bitcoin price action.
- For USD Holders: Use the .U version to avoid unnecessary currency conversion fees.
