Purpose Bitcoin ETF vs QBTC: Difference and Comparison

For the past 30-40 years, investment has emerged as the main source of income for most people and organizations. It generates the most part of the earnings in the entire world.

From the stock exchanges all over the world to multiple mutual funds, this trend has captured the entire world just in a few years. 

In this trend of investment, Bitcoin is the newest of all. It happens to be the currency in a digital format and was created in the year 2009. Like all other currencies, this currency also works with certain mutual funds dedicated to its exchange.

Purpose Company’s ETF and 3iq’s QBTC fund are the two types of public bitcoin investment funds that interest the public at large.   

Key Takeaways

  1. Purpose Bitcoin ETF and QBTC are both investment options for Bitcoin.
  2. Purpose Bitcoin ETF is a regulated investment fund, while QBTC is an unregulated investment fund.
  3. Purpose Bitcoin ETF has a lower management fee and higher liquidity than QBTC.

Purpose Bitcoin ETF vs QBTC 

The difference between Purpose Bitcoin ETF and QBTC is that Bitcoin ETF belongs to a Canadian investment company, Purpose Investment Inc. In contrast, the latter belongs to another Canadian company, 3iQ Corp. These two differ from each other in terms of their value and other features as well. In order to know the most appropriate instrument to invest in, it is crucial to be able to differentiate between the two. 

Purpose Bitcoin ETF vs QBTC

The Purpose Bitcoin ETF has been launched by a public investment company in Canada that is named- Purpose Investment ETF. It happens to be the first-ever exchange fund in respect of Bitcoin that exits physically.

It assists investors in making good choices regarding their investment strategy in Bitcoin or blockchain. 

While on the other hand, 3iQ Corp is another public investment company present in Canada which offers another fund with the name- QBTC. It not only offers a trading option for Bitcoin but for other digital assets too.

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It offers multiple services, such as call authentication of picture authentication services. It can also be termed as one of the safest such funds available for customers looking at its reviews.  

Comparison Table

Parameters of Comparison Purpose Bitcoin ETF QBTC 
Meaning  It is an exchange-traded fund for bitcoin by a Canadian company that helps the investors to do the investing prominently.  This is a closed-ended fund for trading and investing in assets having digital nature such as bitcoin, cryptocurrencies, or blockchain products. 
Stands for ETF stands for Exchange Traded Fund. It stands for Bitcoin Trust Fund. 
Operations  Mostly operated in the United States Trades on the Toronto Stock Exchange 
Year of launching  2018 2020  
Parent company  Canadian investment company- Purpose Investment Inc.  Canadian investment company- 3iQ 
Liquidity  This is more liquid in comparison to the QBTC. This fund is less liquid compared to the ETFs. 
Advantages  It offers tax benefits to the investor as it consumes fewer capital gains over a period of time. It lacks in such advantages and offers certain disadvantages as well. 
Annual management fee 1% 1.95% 

 What is Purpose of Bitcoin ETF?  

This is basically an Exchange Traded Fund that deals with digital assets such as bitcoin and cryptocurrencies. It was launched by a Canadian public investment company- Purpose Investment Inc.

It made its first appearance when it was made trading on the Toronto Stock Exchange. This was the biggest sensation of the year 2018. 

It made a debut in the United States and made its first 80$ Million just in the first hour and surpassed the other Bitcoin Funds available. The company claims it to be the most reliable and safest digital investing strategy tool available out there.

It is one of the kinds of funds that arose on the eastern side but made such a big impact in North America.  

If looked at the structure, this fund works as two terms that are- Purpose Bitcoin ETF, which began trading under the symbols TSX: BTCC.B standing for Canadian dollar-denominated ETF non-currency hedged units and TSX: BTCC.U, which stands for U.S. dollar-denominated ETF non-currency hedged units. 

 What is QBTC?  

QBTC is a Bitcoin public fund provided by a Canadian investment organization, 3iQ Corp. It is basically a tool for those investors who do not wish to possess direct ownership of digital assets. This was made available in the year 2021 in Canada first. 

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This fund trades on the Toronto Stock Exchange and happens to be a rather close-ended fund compared with other counterparts. It works like a big pool and provides investors with a definite number of shares.

As per the company, this is a tool made to make people more acquainted with such digital assets and empower them in terms of investing.  

In this fund, there exists an asset manager who takes care of the allocation of shares. It has the capability of participating in an IPO to raise more money for the venture.

For now, this fund has shares that have a value of 0.00112387 BTC. However, it has certain shortcomings, such as limited availability outside Canada and an annual management fee of 1.95%.  

Main Differences Between Purpose Bitcoin ETF and QBTC  

  1. Purpose Bitcoin ETF is an Exchange-traded fund that works on the pattern of other ETFs, while on the other side, the QBTC is a digital mutual fund that works on the pattern of other such funds. 
  2. Purpose Bitcoin ETF is an exchange-traded fund for bitcoin by a Canadian company which helps investors to do the investing prominently. In contrast, QBTC is a closed-ended fund for trading and investing in assets having digital nature, such as bitcoin, cryptocurrencies or blockchain products. 
  3. Purpose Bitcoin ETF was launched in the year 2018, while the QBTC was launched in the year 2021/ 
  4. Purpose Bitcoin ETF is a digital product offered by Purpose Investment Inc. But the QBTC is a product offered by the 3iQ Corp, Canada. 
  5. Purpose Bitcoin ETF offers tax and liquidity benefits to a major extent in comparison to the 3iQ’s QBTC. 
Difference Between X and Y 2023 05 08T201542.854
References
  1. https://www.sciencedirect.com/science/article/pii/B9780128021170000278
  2. https://ieeexplore.ieee.org/abstract/document/8740574

Last Updated : 24 July, 2023

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26 thoughts on “Purpose Bitcoin ETF vs QBTC: Difference and Comparison”

    • Absolutely, understanding these options can guide investors in navigating the digital asset market effectively.

      Reply
  1. I appreciate the detailed explanation of both Purpose Bitcoin ETF and QBTC. It helps in understanding their operations and differences.

    Reply
  2. The detailed comparison of Purpose Bitcoin ETF and QBTC highlights the nuances that investors need to consider.

    Reply

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