Welcome to the Canadian Crypto Observer. Financial journalist and author Aditya Nain provides timely analysis of market-moving headlines to help Canadian investors make sense of the cryptocurrency landscape.
The U.S. is positioning itself as a global crypto leader
The Canadian crypto market remains highly sensitive to developments in the United States. Under the previous administration, regulatory uncertainty slowed innovation and created friction for major U.S.-based crypto firms. Today, with President Donald Trump back in office and actively advocating for crypto, Washington has accelerated policy moves that could reshape the industry.
These actions may influence global prices and investor sentiment and could play a role in bitcoin’s trajectory in 2025. Below are five major steps taken by the U.S. administration that are likely to reverberate through crypto markets:
- Securities and Exchange Commission (SEC) leadership: The incoming SEC chair, Paul Atkins, has signalled a more industry-friendly approach, favouring regulatory frameworks over aggressive litigation.
- Proposed bitcoin strategic reserve: The administration has discussed creating a strategic reserve of bitcoin similar to national gold reserves, potentially held on the Federal Reserve’s balance sheet.
- Sovereign wealth fund: Plans for a U.S. sovereign wealth fund could include allocations to bitcoin and other digital assets, introducing state-level institutional demand.
- White House AI and crypto advisor: David Sacks, a venture capitalist and former PayPal COO, was named a special advisor on AI and crypto. He has suggested that crypto-friendly legislation could move quickly under the current administration.
- Working Group on Digital Asset Markets: A new interagency working group was created to develop a federal regulatory framework for digital assets, including stablecoins. It brings together senior officials such as the Treasury secretary, the SEC chair and the attorney general.
Ethereum price dynamics in 2025
Ether (ETH), the native token of the Ethereum network, has lagged bitcoin this market cycle. As of Feb. 18, 2025, bitcoin was up roughly 80% year over year while ether had declined. That relative underperformance has frustrated ETH holders and raised questions about its medium-term prospects.
Part of the problem has been governance friction within the Ethereum community. Disputes over leadership and staffing changes at the Ethereum Foundation have dented sentiment. While the foundation does not control ETH’s protocol or price directly, turmoil in a core community institution can weaken investor confidence.
Another factor is the rising number of short positions on ETH taken by hedge funds and other traders. Growing short interest increases selling pressure and can amplify downward price moves when traders bet on declines.
Market data during early 2025 showed a notable increase in ether short positions, with some sources reporting a sharp week-over-week rise that pushed short exposure to new highs. That buildup of bearish bets has been one headwind for ETH price performance.
The chart below illustrates how ETH has trailed not only BTC but also competitors like Solana (SOL) during the past year.
Over the prior 12 months, bitcoin and Solana showed strong gains while ETH was negative. ETH’s share of the total crypto market also fell sharply: a decline of roughly 42% in dominance over the year left ETH with a market share below 10% for the first time since mid-2021.
| Bitcoin (BTC) | Ether (ETH) | Solana (SOL) | |
|---|---|---|---|
| Price change (1-year) | 81.5% | -8.4% | 45.2% |
| Market cap change (1-year) | 83.5% | -8.2% | 41.6% |
| Dominance change (1-year) | 14.9% | -42.3% | 1.2% |
Despite these headwinds, Ethereum retains important advantages: a long-established position as the second-largest crypto by market cap, a vast developer ecosystem, and a history of technological innovation. Those strengths make it premature to write ETH off, though it remains at a crossroads and faces intensified competition from other smart-contract platforms.
BlackRock iShares launches a bitcoin ETF in Canada
On Jan. 13, 2025, BlackRock iShares listed the iShares Bitcoin ETF (IBIT.TO) on CBOE Canada, marking a significant institutional move into the Canadian spot bitcoin ETF market. BlackRock’s U.S. iShares Bitcoin Trust (IBIT) is the largest crypto ETF globally, and its Canadian listing is an important development for Canadian investors seeking regulated, exchange-traded exposure to bitcoin.
BlackRock’s entry prompted fee competition: Fidelity cut the management fee for its Fidelity Advantage Bitcoin ETF (FBTC) to match IBIT’s fee on IBIT.TO’s first trading day. The presence of a global ETF leader in Canada could shift flows and fees across the local market.
Below is a snapshot of spot bitcoin ETFs listed in Canada, showing assets under management and management fees as of mid-February 2025:
| ETF | Ticker | AUM (CAD) | Management fee |
|---|---|---|---|
| Purpose Bitcoin ETF | BTCC | $3.2 billion | 1% |
| Evolve Bitcoin ETF | EBIT | $271.01 million | 0.75% |
| CI Galaxy Bitcoin ETF | BTCX | $1.28 billion | 0.4% |
| 3iQ Coinshares Bitcoin ETF | BTCQ | $350.15 million | 1% |
| Fidelity Advantage Bitcoin ETF | FBTC | $1.01 billion | 0.32% |
| iShares Bitcoin ETF | IBIT | $84.75 million | 0.32% |
Which cryptocurrencies to consider in Canada for 2025
Past crypto cycles often show altcoins outperforming bitcoin during the later stages of a bull run. That pattern—often called “alt-season”—means tokens such as ETH, SOL or XRP can deliver higher percentage gains than BTC when market conditions favour risk-on flows into smaller-cap tokens.
Historically, Ethereum has served as a proxy for the altcoin market. For example, during the last major bull market peak, ETH far outperformed BTC. But in the current cycle, ETH has been a relative laggard, prompting investors to consider alternative altcoins.
Below are the five largest altcoins by market cap (excluding stablecoins) with recent price, return and market-share data as of mid-February 2025:
| Crypto | Symbol | Price (USD) | 1-year return | Market cap | Market share | ETF available? |
|---|---|---|---|---|---|---|
| Ethereum | ETH | $2,640.84 | -8.26% | $317.91 billion | 10.25% | Yes |
| XRP | XRP | $2.50 | 349.22% | $144.39 billion | 4.70% | No |
| Binance Coin | BNB | $634.53 | 81.55% | $90.25 billion | 2.91% | No |
| Solana | SOL | $163.60 | 45.53% | $79.6 billion | 2.57% | No |
| Dogecoin | DOGE | $0.24 | 188.21% | $36.22 billion | 1.18% | No |
Holding crypto in TFSA, RRSP or FHSA
Tax-advantaged accounts can be an efficient way to hold regulated crypto products like ETFs. With the RRSP contribution deadline and TFSA room changes in 2025, many Canadians are evaluating whether to use retirement and tax-free accounts to gain crypto exposure. If you plan to hold crypto ETFs in an RRSP, TFSA or FHSA, confirm eligible holdings and review tax and contribution rules before making allocations.
Crypto volatility and risk management
Cryptocurrencies are speculative assets that can experience large price swings. While long-term investing in crypto has rewarded some investors, the sector carries material market, technological and regulatory risks. Align any crypto allocation with your investment goals, time horizon and risk tolerance. Invest only what you can afford to lose, and take precautions to avoid scams and insecure platforms.
More about crypto:
- Donald Trump’s new memecoin: $Trump
- Will bitcoin crash in 2025?
- Bitcoin tops USD$100,000 for the first time
- Price of bitcoin hits new high after Trump victory, and more crypto news
- How Coinbase is reshaping Canada’s crypto landscape
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