Bitcoin ETF & Crypto ETP Comparison 2026
There is no true Bitcoin ETF in Europe — just as with gold, UCITS rules forbid undiversified funds. Instead you trade Bitcoin through physically backed ETPs (Exchange Traded Products). We explain the difference, compare the most important products with ISIN and TER, and show the Germany-specific tax angle.
Bitcoin ETF or Bitcoin ETP? The crucial difference
In the US, true spot-Bitcoin ETFs have existed since 2024. Not so in Europe: a UCITS fund has to be diversified, and a product holding only Bitcoin does not meet that requirement. That’s why all European “Bitcoin ETFs” are in fact ETPs / ETNs (Exchange Traded Products/Notes): exchange-traded notes that ideally are backed by real, physically held Bitcoin. It is the same construction as with gold ETCs.
- ETP/ETN: legally a bearer note — not a segregated fund. There is an issuer risk.
- Physically backed: reputable products hold real Bitcoin with a custodian (cold storage) for every unit. Always look for “physical” / “1:1 backed”.
- ETP advantage: bought in your normal brokerage account via the exchange — no wallet of your own, no crypto exchange, no seed-phrase risk.
The most important Bitcoin ETPs compared
All products listed here are physically backed with Bitcoin. The differences lie mainly in the TER and in liquidity on the exchange.
Physically backed Bitcoin ETPs (as of June 2026)
| Product | ISIN | TER p.a. | Backing |
|---|---|---|---|
| 21Shares Core Bitcoin ETP (CBTC) | CH1199067674 | 0.21 % | ✓ physical |
| CoinShares Physical Bitcoin (BITC) | GB00BLD4ZL17 | 0.25 % | ✓ physical |
| WisdomTree Physical Bitcoin (BTCW) | GB00BJYDH287 | 0.35 % | ✓ physical |
| VanEck Bitcoin ETN (VBTC) | DE000A28M8D0 | 1.00 % | ✓ physical |
| 21Shares Bitcoin ETP (ABTC) | CH0454664001 | 1.49 % | ✓ physical |
| ETC Group Physical Bitcoin (BTCE) | DE000A27Z304 | 2.00 % | ✓ physical |
🇩🇪 The German tax angle (and why it doesn’t travel)
For German tax residents there is — similar to physical gold — a potential advantage. If a physically backed crypto ETP with a claim to delivery of the underlying coins is treated under case law like a private disposal (§ 23 EStG), the following applies in Germany. Crucially, this is Germany-specific: most other countries tax crypto gains regardless of the holding period, so always check your local rules.
- Sale after more than 12 months’ holding period: tax-free in Germany — just like holding Bitcoin directly.
- Sale within one year: taxable, but with an exemption limit of €1,000 per year.
- Products without a delivery claim (pure note) may instead fall under the standard 25 % capital gains tax.
Whether a specific Bitcoin ETP qualifies as a § 23 transaction (tax-free after 1 year) or as an investment subject to capital gains tax depends on the exact structure (delivery claim) and has not been decided by the highest courts for every product. And this only concerns Germany: most other jurisdictions tax crypto gains irrespective of how long you held. This is not tax advice — clarify the treatment of your specific product, in your country, with a tax adviser.
How much Bitcoin belongs in your portfolio?
Bitcoin is highly volatile — drawdowns of 50–80 % have happened repeatedly. As a speculative add-on, many investors hold at most 1–5 % of their assets in it. The core of the portfolio belongs in broadly diversified equity ETFs; Bitcoin is the high-risk bet at the edge, not the foundation.
FAQ — Bitcoin ETF / ETP 2026
Is there a true Bitcoin ETF in Europe?
No. UCITS ETFs must be diversified, and a pure Bitcoin product does not meet that requirement. All “Bitcoin ETFs” tradable in Europe are in fact physically backed ETPs/ETNs — exchange-traded notes with real, deposited Bitcoin. True spot-Bitcoin ETFs exist only in the US.
Which Bitcoin ETP is the best?
With otherwise identical physical backing, the TER is the main decider: cheap options are the 21Shares Core Bitcoin ETP (CH1199067674, 0.21 %) and CoinShares Physical Bitcoin (GB00BLD4ZL17, 0.25 %). Older, better-known products such as BTCE (DE000A27Z304) are liquid but, at 2.0 %, significantly more expensive.
Is a Bitcoin ETP safe?
The market-price risk is very high — Bitcoin swings enormously. On top of that, an ETP is legally a note (not a segregated fund); for physically backed products the issuer risk is largely covered by real, custodied Bitcoin. It remains a highly speculative investment.
Do I have to pay tax on gains from a Bitcoin ETP?
It depends on the product and on your country of tax residence. In Germany, physically backed ETPs with a delivery claim can be treated like holding Bitcoin directly — in which case a sale after more than one year is tax-free, while other products fall under the 25 % capital gains tax; that classification is not fully settled. This one-year exemption is a German specialty: most other countries tax crypto gains regardless of holding period. When in doubt, ask a tax adviser in your own jurisdiction.