EBIT: What It Is and How It Works
The Evolve Bitcoin ETF (EBIT) is a physically-backed Bitcoin ETF managed by Evolve Funds Group. It holds actual spot Bitcoin on the Toronto Stock Exchange, making it eligible for Canadian registered accounts. Evolve launched EBIT in February 2021, making it one of the earliest Canadian Bitcoin ETFs alongside Purpose (BTCC).
Bitcoin is held in cold storage via a combination of Gemini as crypto custodian, with EY (Ernst & Young) providing independent portfolio verification. This structure — where a major accounting firm independently verifies Bitcoin holdings — is a distinctive feature of Evolve's custody approach.
| Detail | Value |
|---|---|
| Full Name | Evolve Bitcoin ETF |
| Ticker | EBIT (TSX) |
| Issuer | Evolve Funds Group |
| Custodian | Gemini (crypto custody) + EY verification |
| Structure | Physically-backed (spot Bitcoin) |
| MER | ~0.75% per year |
| Currency | Canadian dollars (CAD) |
| Exchange | Toronto Stock Exchange (TSX) |
| TFSA/RRSP/FHSA Eligible | Yes — all three |
| Inception | February 2021 |
TFSA, RRSP, and FHSA Eligibility
EBIT is listed on the Toronto Stock Exchange, a designated stock exchange under Canada's Income Tax Act. This makes it eligible for all registered accounts — identical to FBTC and BTCX.B in this respect:
- TFSA — gains are completely tax-free
- RRSP — contributions are deductible; growth is tax-deferred
- FHSA — contributions deductible; first home withdrawals are tax-free
- RRIF, RESP, RDSP — eligible in all standard registered plans
The Real Cost of EBIT's 0.75% MER
MER fees don't feel like much when you look at them as a single number. The compounding effect over time is where the cost becomes material.
Example: $50,000 position, 20% annual Bitcoin growth
Estimates assume 20% annual Bitcoin growth compounding. Actual results will differ based on Bitcoin's performance. MER drag compounds proportionally at any growth rate.
These numbers compound. At 30% annual Bitcoin growth the 10-year cost differential doubles. The practical question is: what does EBIT offer that justifies $7,500+ more in fees over 10 years on a $50,000 position?
EBIT Pros and Cons for Canadian Investors
- TSX-listed — eligible for TFSA, RRSP, FHSA
- EY provides independent Bitcoin holdings verification
- One of Canada's earliest Bitcoin ETFs (Feb 2021) — 4+ year track record
- Physically-backed spot Bitcoin — not futures
- CAD-denominated — no currency conversion
- Available on WealthSimple and major Canadian brokerages
- 0.75% MER — roughly double FBTC (0.39%) and BTCX.B (0.40%)
- No clear structural advantage over lower-cost competitors
- Gemini as custodian — FBTC's Fidelity Digital Assets is arguably stronger
- Smaller AUM than FBTC and BTCX.B — less liquidity
- EY verification adds cost but provides minimal practical benefit to most retail investors
- Higher MER compounds significantly over a 5-20 year holding period
EBIT vs FBTC vs BTCX.B: Full Comparison
| ETF | Ticker | MER | Custodian | Inception | Verdict |
|---|---|---|---|---|---|
| Fidelity Advantage | FBTC | ~0.39% | Fidelity Digital Assets | Dec 2023 | Best value |
| CI Galaxy | BTCX.B | ~0.40% | Coinbase Custody | Mar 2021 | Near-identical, longer history |
| Evolve Bitcoin | EBIT | ~0.75% | Gemini + EY verification | Feb 2021 | Hard to justify the premium |
| Purpose Bitcoin | BTCC | 1.50% | Gemini | Feb 2021 | Avoid |
The verdict is straightforward: EBIT and FBTC/BTCX.B are structurally similar products. All three are physically-backed spot Bitcoin ETFs on the TSX, eligible for all registered accounts. EBIT charges approximately 0.35% more per year with no clear compensating advantage for most retail investors.
Should you switch from EBIT to FBTC or BTCX.B?
Inside a registered account (TFSA, RRSP), switching is straightforward and tax-free: sell EBIT, buy FBTC or BTCX.B. No capital gains event. The MER savings begin immediately. In a taxable account, selling EBIT may trigger a capital gains event — consult a tax advisor before switching.
Get the Free ETF Comparison Guide
FBTC vs BTCX.B vs EBIT — which is right for your TFSA or RRSP? We break it down with real numbers including MER cost projections based on your account type.
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Open WealthSimple →Frequently Asked Questions
What is the MER for EBIT?
EBIT (Evolve Bitcoin ETF) has a management expense ratio of approximately 0.75% per year. This is roughly double the MER of FBTC (0.39%) and BTCX.B (0.40%), which are the two lowest-cost Canadian-domiciled Bitcoin ETFs.
Can I hold EBIT in my TFSA, RRSP, or FHSA?
Yes. EBIT is listed on the TSX (a designated stock exchange under the Income Tax Act), making it eligible for all registered accounts including TFSA, RRSP, RRIF, RESP, RDSP, and FHSA. This eligibility is identical to FBTC and BTCX.B.
Is EBIT better than FBTC or BTCX.B?
For most Canadian investors, no. EBIT provides the same spot Bitcoin exposure and registered account eligibility at roughly twice the annual cost. The EY independent verification is a genuine differentiator for investors who prioritize it, but it doesn't offset the compounding impact of a 0.35% MER premium over 5-20 years for most portfolios.
How much does EBIT's higher MER cost over 10 years?
On a $50,000 position at 20% annual Bitcoin growth, EBIT costs approximately $7,500 more than FBTC over 10 years in compounding MER drag. At higher Bitcoin growth rates, the gap widens significantly. These are estimates — actual results depend on Bitcoin's performance.
Should I switch from EBIT to FBTC inside my TFSA?
Inside a TFSA or RRSP, selling EBIT and buying FBTC is a tax-free event — no capital gains tax applies. The MER savings begin immediately after the switch. For most investors holding EBIT in a registered account, evaluating this switch is worthwhile. In a taxable account, there may be a capital gains event on EBIT sale — consult a tax advisor first.
Not Sure Which ETF or Account to Choose?
The right Bitcoin ETF — and the right account — depends on your contribution room, tax situation, and time horizon. Our free assessment models the optimal structure for your specific numbers.
This content is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Bitcoin and ETF investments carry significant risk. MER figures are approximate — verify current fund documents at EvolvEtfs.com. Cost projections are illustrative estimates only. Consult a qualified financial advisor before making investment decisions, including decisions to switch between ETFs. BalanceBitcoin is not a registered investment dealer or portfolio manager.