September 19, 2021

Crypto trading with IB

Continuing the topic cryptoassets in the stock market.

At the moment there is 4 options investment in cryptocurrencies through classic brokers.
I'll tell you about the options available in Interactive Brokers:

Crypto trading with IB

1) Canadian ETFs.

Unlike the US, Canada has allowed ETFs that buy cryptocurrencies directly.
The most popular Canadian Bitcoin ETF - Purpose Bitcoin ETF (BTCC) with assets of about $ 1 billion
There is also Ether-ETF:ETHH, ETHX, ETHR.
The main disadvantage is the management fee of about 1% per year.
To access these ETFs via Interactive Brokers it is required to have permission for trading on the Canadian market.

2) Cryptocurrency Trusts.

The most popular operator is Grayscale.
The product line includes bitcoin trusts (GBTC), filecoin, lightcoin, etc.
The main disadvantage is the management fee 2% per year.
To access these trusts via Interactive Brokers it takes to be accredited investor.

3) Bitcoin Mini Futures (BRR).

1 futures = 1/10 bitcoin value.
The main disadvantage contango = 2.5% per annum.
To access these futures through Interactive Brokers, you must have not less than $ 100,000.

4) Purchase cryptocurrency through Paxos.

Interactive Brokers has entered into an agreement with the Paxos blockchain platform.
IB provides its software and clients, Paxos does the rest, incl. takes responsibility for storing the crypt.
Now available for trading: Bitcoin (BTC), Ether (ETH), Litecoin (LTC).
Commissions are low: up to 0.18% of the transaction amount, but not less than $ 1.75.
But here, too, there are access restrictions. At the moment this opportunity is open for US residents only.

Output: Convenient and free access to cryptocurrencies through classic brokers using Canadian ETFs only.