Canada’s New Bitcoin ETF: What We Learned From a Bankruptcy Insider

What we talked about.

Sunny Ray sits down with Magdalena to discuss the launch of Canada's first true Bitcoin ETF on the Toronto Stock Exchange, a continuously traded fund that tracks bitcoin's net asset value more closely than closed end products like 3iQ's Bitcoin Fund or Grayscale Trust. The conversation shifts into Magdalena's role as a court appointed inspector overseeing the QuadrigaCX bankruptcy, revealing new details about Gerald Cotten's fraud, the 67,000 lost Ether, and why his death was never fully confirmed. She also shares how she helped launch 3iQ's original Bitcoin Fund IPO. The second half turns personal as Magdalena traces her path into Bitcoin back to her grandmother, who lost her family's land in Poland after World War Two, and her parents' escape from communism as refugees. She connects those stories of confiscated property and scarcity to why Bitcoin's unseizable, sound money properties resonate with her so deeply, offering a rare firsthand perspective on communism, generational loss, and financial sovereignty.

A QuadrigaCX bankruptcy inspector unpacks Canada's new Bitcoin ETF and the fraud, loss, and family history behind her conviction.

The questions, and the answers.

What happened with today's launch, and what makes this Bitcoin ETF different from existing products like 3iQ's fund or Grayscale?

For the first time, Canadians and anyone with access to the Toronto Stock Exchange can buy bitcoin through an ETF. Unlike closed end funds that issue a fixed set of units and trade at a premium, this ETF continuously creates and redeems units, so it tracks the net asset value of the bitcoin it holds much more closely. I think the whole industry has been waiting for this for years, and I wouldn't be surprised if the US gets one soon too, with VanEck and Valkyrie already in the pipeline.

What exactly was your role in the QuadrigaCX bankruptcy?

I was appointed by the Supreme Court of Nova Scotia as one of five inspectors. Our job is to provide direction to the trustee overseeing the bankruptcy and fund distribution, including advice on pricing when selling off assets Gerald had illegally bought with creditor funds, like properties, cars, and planes. We also flag things other players might miss, like the fact that a huge amount of Ethereum was locked up because of his own bad code.

How much Ethereum was lost, and what is it worth now?

67,000 Ether was lost, which was worth about 150 million Canadian dollars at the time. I actually monitor the current price, and last I checked it was around 1.8 billion dollars. Only about 40 million of the over 200 million dollars in total claims has been recovered so far, which in a way makes that locked Ethereum the best remaining shot for victims to get closer to being made whole.

Was Gerald Cotten's death ever confirmed?

No, unfortunately not. One of the things we directed the council representing affected users to do was send a letter to the RCMP requesting an autopsy and to dig up the body. As far as I know that hasn't happened, since the investigation is confidential and pursuing it now would be very costly without recovering any additional money for victims.

How did you first get into Bitcoin?

Honestly it started as number go up, I didn't want to be left out when it went from a thousand to three thousand. But the real spark was standing in line for twenty minutes to send money and paying thirty five dollars, then sending bitcoin from one account to another instantly. That contrast made me think there was real magic here, and I eventually left my government job and pension to join the industry, even through a three year bear market.

What's your personal story and how does it connect to why you believe in Bitcoin?

My grandmother, who's turning 101 this month, grew up in Poland through two wars and lost her family's beautiful land when the borders moved after World War Two. My parents later escaped communist Poland as refugees, crossing the border with passports that should never have been issued to the whole family. Hearing those stories of seized land and scarcity is why I see Bitcoin as unseizable property you can actually pass on to your family.