Canada Moves Closer to Crypto ETFs: Regulators Seek Public Input on Framework
Canadian regulators are finally waking up to the crypto ETF revolution—only a few years late to the party.
The big move: The Canadian Securities Administrators (CSA) just dropped a consultation paper seeking public feedback on a proposed framework for crypto asset ETFs. No more regulatory limbo—maybe.
Why it matters: This could open the floodgates for institutional-grade crypto products in Canada. Think Bitcoin ETFs with actual regulatory oversight—not just the wild west of unlisted trusts.
The catch: Knowing how regulators work, expect enough red tape to wrap around the CN Tower twice. But hey, at least they’re trying—right?
Bottom line: When the suits finally embrace crypto, you know the train’s left the station. Now if only they could move faster than a blockchain confirmation time.
The Canadian Securities Administrators (CSA) published a consultation paper on the exchange-traded fund (ETF) regulatory framework.
In 2023, the CSA began reviewing ETF regulations to assess whether the current regulations applicable to ETFs remain appropriate. The review focused on the unique features of ETFs, such as secondary market trading, creation and redemption of ETF units by authorized dealers, and the underlying arbitrage mechanism of ETFs.
The consultation paper proposes certain enhancements to the framework, taking into consideration a study of the Canadian ETF market conducted by the Ontario Securities Commission’s Thought Leadership Division and the Good Practices Relating to the Implementation of the IOSCO Principles for Exchange Traded Funds published by the International Organization of Securities Commissions.
ETFs have experienced robust growth in Canada, with assets under management reaching $518 billion by the end of 2024. Retail investors make significant use of ETFs, and the CSA expects interest and investment in ETFs to grow further.
“ETFs are an increasingly important investment vehicle for Canadians, providing investors with access to a wide range of investment exposures and strategies and offering intraday liquidity,” said Stan Magidson, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. “This consultation will provide the CSA with important insights into the unique regulatory considerations for these products.”
The consultation also seeks stakeholder views on investor access to U.S. ETFs through brokerage accounts and exposure to U.S. and other foreign ETFs through publicly offered investment fund holdings.
The CSA invites stakeholders to respond to the consultation paper, which is available on CSA members’ websites. The comment period closes on October 17, 2025.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
Source: CSA
