Bitcoin in a TFSA: Smart Move or Risky Gamble?
Bitcoin is one asset that has shaken the investment world in the past 15 years.
Some early believers became millionaires, while many others — watching from the sidelines — now wish they had jumped in a decade ago.
This is one of the biggest dilemmas in investing: things always look brilliant in hindsight. The real question is… what about now?
Does Bitcoin Still Have Some Juice Left?
Bitcoin is not like any other asset.
It’s volatile, unpredictable, and not for the faint of heart — but it’s also one of the few digital assets with a limited supply. Only 21 million Bitcoins will ever exist. Compare that to other cryptocurrencies that can be created endlessly, and you start to see why it’s considered “digital gold.”
In the last few years, big money has noticed.
Major investment institutions have started adding Bitcoin to their portfolios. High-profile investors like Cathie Wood (ARK Invest) and Chamath Palihapitiya have been vocal supporters, betting on Bitcoin’s long-term potential.
Bitcoin in a TFSA — Why It Could Make Sense
A TFSA is one of the best tools Canadians have for growing investments tax-free. Holding Bitcoin (or Bitcoin-focused ETFs) inside a TFSA means any gains are shielded from tax — and in an asset class known for huge price swings, that’s a big deal.
The key, however, is allocation.
If you’re risk-averse, Bitcoin should be a small slice of your TFSA — 5% or less of your portfolio. That way, you get exposure to potential upside without risking your entire investment plan.
How to Add Bitcoin to Your TFSA
You don’t have to directly buy Bitcoin and figure out cold storage. Instead, you can invest in Bitcoin-focused ETFs and funds that are eligible for TFSA accounts. Some options include:
- ARKB – ARK Invest’s Bitcoin ETF
- FBTC – Fidelity’s Bitcoin ETF
- Several Canadian-listed Bitcoin ETFs available through platforms like Wealthsimple, Questrade, and others.
These ETFs hold Bitcoin on your behalf, making it easy to gain exposure without the complexity of managing it yourself.
The Million-Dollar Speculation
Some Bitcoin bulls predict it could reach $1 million per coin in the next 10–15 years. Whether or not that happens is anyone’s guess. The truth is, Bitcoin’s future will be shaped by adoption rates, regulation, and the broader economy.
But here’s the bottom line:
Bitcoin in a TFSA can be both smart and risky — depending on how much you own and how you handle the volatility.
If you believe in Bitcoin’s long-term story and can stomach the ups and downs, there’s value in holding a small amount inside your TFSA.
The tax-free growth potential combined with Bitcoin’s scarcity makes it a unique play. Just remember — keep your exposure reasonable, and let time do the heavy lifting.
So… what do you think? Is Bitcoin part of your TFSA strategy?