How Bitcoin ETFs Became Mainstream
Elliot Johnson is a key figure in Bitcoin investing. He helped bring Bitcoin ETFs from a “no” in 2017 to a popular choice today. As the Chief Investment Officer and Chief Operating Officer of Evolve ETFs, Johnson first applied for a Bitcoin ETF in 2017 but was rejected. He kept working on it and launched the Evolve Bitcoin ETF (TSX: EBIT) in February 2021.
In June 2025, Evolve introduced the Levered Bitcoin ETF (TSX: LBIT), which gives investors 1.25 times the daily exposure to Bitcoin. This fund is for those who want to take more risk to try and earn higher rewards.
What Is a Bitcoin ETF?
In the past, buying Bitcoin was tricky. People had to send money to unknown exchanges and worry if their Bitcoin was safe. Now, ETFs (exchange-traded funds) allow people to buy Bitcoin easily through their regular brokerage accounts. These funds hold real Bitcoin and are regulated, making them safer and more trustworthy for institutions and regular investors alike.
According to Johnson, ETFs solve many problems because they let investors use the usual financial system without the hassle of managing private keys or worrying about security risks.
From Rejection to Success
When Evolve filed for a Bitcoin ETF in 2017, there were no spot Bitcoin ETFs anywhere—only futures contracts were allowed. Futures are bets on the price of Bitcoin instead of owning it directly. By 2021, Canada approved ETFs that hold physical Bitcoin, and Evolve launched its EBIT fund. This fund fits into common Canadian accounts like TFSA and RRSP, making it accessible to many investors.
ETFs like EBIT provide real-time pricing and daily liquidity. This means investors can buy and sell easily, and the ETF price closely matches the actual Bitcoin price.
Bitcoin Market Structure and Stability
Johnson explained that Bitcoin’s market is open 24/7 and has no circuit breakers or government bailouts. This means problems get solved quickly through market actions. Although Bitcoin can be volatile, this volatility is decreasing, which attracts more big investors.
Are ETFs Backed by Real Bitcoin?
Some critics call Bitcoin ETFs “paper Bitcoin,” implying they don’t hold real Bitcoin. Johnson dismisses these claims. He says Evolve’s ETFs always hold actual Bitcoin with one-to-one backing. Institutional investors who create or redeem ETF shares must be approved participants to ensure trust between the ETF and real Bitcoin markets.
Self-Custody vs. Regulated Custody
Johnson learned early that holding private keys himself can be risky. In 2017, during the Bitcoin Cash fork, he found out that without private keys, owners do not control their coins or forks. While self-custody is vital for people living under harsh rules, many large investors prefer regulated custodians with strong controls. This provides security and peace of mind.
Johnson believes the future will include both methods. Some investors will hold Bitcoin directly, while others will use ETFs or financial products to access Bitcoin easily.
How ETFs Handle Bitcoin Forks
Bitcoin forks happen when the blockchain splits into two versions. Evolve’s ETFs plan for this in their legal documents. If a fork creates valuable new coins, the ETF will sell these coins and buy more Bitcoin. If the custodian does not support the fork, then the ETF does not hold those new coins. This plan protects investors and keeps the ETF focused on real Bitcoin.
Bitcoin Adoption Is Just Getting Started
Johnson says we are still early in Bitcoin adoption. Most big investors, like pension funds and banks, have little or no Bitcoin exposure. Even in Canada, only one of the six biggest banks allows advisors to use Bitcoin ETFs officially.
He notes that as more people hold Bitcoin long-term, the price steadies, attracting more investors. Bitcoin is now a regular topic on financial news stations like CNBC and Bloomberg. This shows Bitcoin is becoming part of the mainstream financial world.
Where Evolve ETFs Fit
- Evolve Bitcoin ETF (TSX: EBIT): This fund holds real Bitcoin. It is simple to use and fits registered accounts like TFSAs and RRSPs.
- Evolve Levered Bitcoin ETF (TSX: LBIT): Launched in 2025, it offers 1.25 times daily Bitcoin exposure. It suits investors who understand the risks of leverage for higher potential rewards.
