Hot Picks: Digital assets move from fringe to foundational as ETFs go mainstream

Digital assets are entering a new era of legitimacy as regulators in Canada and the U.S. establish frameworks for spot Bitcoin and Ethereum ETFs. The move is transforming the perception of cryptocurrencies from speculative assets to core components of modern portfolios.

BNN Bloomberg spoke with Mike Philbrick, CEO of ReSolve Asset Management, who says this clarity has made digital assets a foundational part of investing. He highlights ETFs offering exposure to Bitcoin, Ether and gold — assets that combine scarcity, diversification and regulated access.

Key Takeaways

• Regulatory clarity has legitimized Bitcoin and Ethereum ETFs in Canada and the U.S., accelerating mainstream adoption.
• Institutional firms such as BlackRock, Fidelity and Morgan Stanley are integrating digital assets into traditional portfolios.
• Bitcoin ETFs like Fidelity’s FBTC offer simple, low-cost exposure to the original digital asset through trusted custodians.
• Ether ETFs such as 3iQ’s ETHQ add staking income, reflecting Ethereum’s role in powering decentralized finance and tokenization.
• Hybrid funds like BTGD merge Bitcoin and gold to create a “hard money” portfolio that diversifies against inflation and systemic risk.

Read the full transcript below:

ANDREW: Now it’s time for Hot Picks. Earlier this year, regulators established clearer frameworks for spot Bitcoin and Ethereum ETFs. Our guest has three ETFs in this space on his radar. We’re joined by Mike Philbrick, CEO of ReSolve Asset Management. Mike, great to see you as ever. Start off with FBTC — the Fidelity Advantage Bitcoin ETF — which trades on the TSX, right?

MIKE: That’s right. And as you point out, Andy, these assets are moving from fringe to foundational. BlackRock’s ETF in the U.S. is now around US$100 billion, and you’re seeing firms like BlackRock, Morgan Stanley and Fidelity start to include these in traditional portfolios as core allocations.

We want to start looking at these types of holdings, and as you mentioned, the Fidelity Advantage Bitcoin ETF trades on the TSX. It’s a relatively cheap way — with a management expense ratio of about 36 basis points — for investors to gain exposure to Bitcoin, which I view as the new scarce asset, the new store of wealth.

These scarce assets are particularly important in portfolios today, given geopolitical uncertainty and ongoing monetary debasement. Scarce assets are unique because they can’t be mass-produced. Take oil, for instance: if prices rise, more wells are drilled and more supply comes online. Bitcoin is different. Only 21 million coins will ever exist, and about 95 per cent have already been mined. Yet, Bitcoin is still absent from roughly 95 per cent of portfolios.

Unlike a produced asset, a scarce asset has to be purchased from someone who already owns it. That scarcity makes it a powerful diversifier. That’s why I think Bitcoin deserves inclusion, and Fidelity’s Advantage Bitcoin ETF offers a high-quality, cost-effective access point.

ANDREW: You’ve also brought one that’s a bit more complicated. The ticker is ETHQ, again in Toronto — that’s the 3iQ Ether Staking ETF, right?

MIKE: Yes, and it is a little more complex. Ethereum has become the backbone of what’s known as decentralized finance, or DeFi, and tokenization. You hear a lot about tokenization these days — but what does it mean?

In today’s financial system, it takes days to settle transactions. If you buy a stock or send money internationally, it can take multiple days, and several intermediaries take fees along the way. Transactions also depend on business hours. Tokenization changes all of that — transfers can occur in seconds, 24 hours a day, seven days a week, and cost only pennies.

That kind of efficiency means faster, cheaper transactions and fewer frictions across the financial system. It frees up capital and acts as a massive infrastructure upgrade — something finance has needed for decades.

The 3iQ Ether Staking ETF invests in Ethereum and also earns staking yield. Staking simply means you’re contributing to the system by validating transactions, and in return, you earn yield. So investors get both exposure to the Ethereum blockchain and additional income.

U.S. ETFs aren’t yet able to stake — that capability is coming — so Canadian investors currently have a small advantage.

ANDREW: I’m just checking — yield can be a slippery concept. Bloomberg isn’t yet calculating one for this ETF, right?

MIKE: Correct. Right now, the yield from staking is about 1.2 per cent. Not all of the Ethereum can be staked because doing so locks up those coins, so only a portion is used. The fund shares that yield — 75 per cent goes to ETF investors and 25 per cent to 3iQ.

That yield helps offset the management expense ratio. Call it 1.6 per cent on fees, minus roughly 1.2 per cent from staking — so you’re effectively getting exposure for around 40 basis points. That’s pretty reasonable for a fully regulated product trading on a public exchange.

ANDREW: And finally, this one trades in New York — BTGD — the STKd 100% Bitcoin & 100% Gold ETF, which marries two very different assets, correct?

MIKE: Exactly. Both are scarce assets. Gold has always been a classic example — it can’t be created out of thin air or printed like money. Bitcoin is the new kid on the block, the digital scarce asset.

BTGD combines the two — investors get one dollar of exposure to Bitcoin and one dollar to gold, in a single package. The fund rebalances regularly: when gold runs ahead, it’s trimmed and added to Bitcoin, and vice versa.

So it really bridges the old world and the new — combining the oldest and newest stores of value. Together, they form a modern hedge against monetary debasement and systemic risk, a truly “hard money” portfolio. And because it behaves differently from stocks and bonds, it provides valuable diversification.

ANDREW: It’s amazing how much ingenuity is going into these products. Mike, we’d better leave it there. Thank you very much indeed.

MIKE: Thanks, Andy.

ANDREW: That’s Mike Philbrick, CEO of ReSolve Asset Management.

This BNN Bloomberg summary and transcript of the Oct. 15, 2025 interview with Mike Philbrick are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.