Bitcoin ETP or Real Bitcoin: Which Suits You?
Bitcoin ETP or real bitcoin? Fees, taxes in DE, AT and CH, risks and custody compared, with a worked example in EUR and CHF. How to choose.
Short answer: A bitcoin ETP is a security in your brokerage account that tracks the bitcoin price and is usually backed by real bitcoin held by a custodian. You get the price, but not the coins: you can neither send them nor secure them yourself, you pay a fee every year and you depend on the issuer, the custodian and your bank. Real bitcoin in your own wallet belong to you alone (as of Nov 13, 2026).
The price or the coins: what do you actually want to own?
Your bank offers you bitcoin at the click of a button: as an ETP, right in your brokerage account next to your stock ETFs. No wallet, no seed phrase, no crypto exchange. That sounds like the convenient solution, and for some people it is.
But you're not buying bitcoin. You're buying a promise denominated in bitcoin. As long as everything works, you won't notice the difference. It shows in the costs over the years, in taxes, at weekends when the exchange is closed, and in the rare case that a link in the chain fails.
This article puts the two side by side: what a bitcoin ETP is, what it costs, how it is taxed in Germany, Austria and Switzerland, and when it is the right choice. All the ways to buy real bitcoin are in the guide Buying bitcoin.
What is a bitcoin ETP?
ETP stands for exchange traded product. Legally, a bitcoin ETP is usually a bearer bond: the issuer owes you the value of a set amount of bitcoin. You buy and sell it like a stock through your bank or broker, with an ISIN and an order fee.
With a physically backed ETP, the issuer buys real bitcoin for every unit it issues and stores them with a custodian, such as Coinbase Custody or BitGo. The coins serve as collateral for investors. All 21 bitcoin ETPs listed by justETF on Nov 12, 2026, are built this way.
There are also older tracker certificates that only replicate the price. They are unsecured debt of the issuer. If it goes bust, you stand in line with the other creditors. So look for "physically backed" in the product name and the key information document.
ETF, ETP, ETN: what's the difference?
In the US, these products are called ETFs. Spot ETFs have existed there since Jan 11, 2024, for example iShares Bitcoin Trust (IBIT). How many bitcoin they hold and when money flowed in is shown in the article Bitcoin ETF flows and holdings.
In the EU, a fund under the UCITS rules may not hold just a single asset. That's why there are no bitcoin ETFs here, but ETPs, ETNs or ETCs. The names differ, the structure is usually the same: a debt security backed by bitcoin. Most brokers may not let retail investors in the EU buy US ETFs, because they lack the mandatory key information document. In Switzerland, it depends on the broker.
Bitcoin ETP vs. real bitcoin at a glance
| Real bitcoin, self-custodied | Bitcoin ETP in a brokerage account | |
|---|---|---|
| What you own | the coins, through your keys | a claim against the issuer |
| Ongoing costs | none | 0.05–2.00% a year |
| Purchase costs | approx. 0.4–1.5% at the provider | order fee and spread on the exchange |
| Tradable | around the clock, 365 days | during exchange hours, on weekdays |
| Send, pay, use as collateral | yes | no |
| Who can block or freeze it? | nobody | bank, broker, issuer |
| Inheritance | needs preparation | with the brokerage account |
| Knowledge needed | wallet and seed phrase | a securities account |
The ETP fee range is from justETF (as of Nov 12, 2026); the purchase costs of real bitcoin are from the comparison Bitcoin-only app or crypto exchange.
What a bitcoin ETP costs
An ETP's fee is called the TER (total expense ratio). The issuer takes it continuously from the bitcoin held. The amount of bitcoin behind each unit therefore shrinks year after year, no matter how the price moves.
The differences are large, and they have nothing to do with the size of the product:
| Bitcoin ETP | TER per year | Assets | ISIN |
|---|---|---|---|
| CoinShares Physical Bitcoin | 0.15% | €1’427m | GB00BLD4ZL17 |
| WisdomTree Physical Bitcoin | 0.15% | €1’299m | GB00BJYDH287 |
| iShares Bitcoin ETP | 0.15% | €1’260m | XS2940466316 |
| Bitwise Physical Bitcoin ETP | 2.00% | €711m | DE000A27Z304 |
| 21shares Bitcoin ETP | 1.49% | €532m | CH0454664001 |
| 21shares Bitcoin Core ETP | 0.10% | €516m | CH1199067674 |
| Bitwise Core Bitcoin ETP | 0.05% | €164m | DE000A4AER62 |
Source: justETF, as of Nov 12, 2026. The six largest bitcoin ETPs by assets and the cheapest one. Some rates are temporary discounts: at iShares, 0.15% applies only until Dec 31, 2026; from Jan 1, 2027, it is 0.25%. The names are examples, not a recommendation.
The fourth and fifth products on the list are the oldest on the market. Anyone who bought them years ago still pays ten to forty times what the cheap competitors charge. Switching costs order fees and, in Germany, possibly taxes, so many people simply leave them where they are.
How to calculate the fee over the years
Bitcoin after n years = amount ÷ price × (1 − purchase costs) × (1 − TER)^n
Real bitcoin: €10’000 ÷ €62’234 × 0.99 = 0.1591 BTC, with no ongoing costs after that.
ETP at 0.25%, 20 years: €10’000 ÷ €62’234 × 0.998 × 0.9975^20 = 0.1607 × 0.998 × 0.951 = 0.1525 BTC
ETP at 2.00%, 20 years: 0.1607 × 0.998 × 0.98^20 = 0.1607 × 0.998 × 0.668 = 0.1071 BTC
A hardware wallet for about €80 to €150 makes up for the cheap ETP fee on €10’000 after about five to ten years (0.15% of €10’000 is €15 a year).
How many bitcoin you accumulate with a monthly amount is worked out in the savings plan calculator. With real bitcoin the amount stays the same afterwards. With an ETP you subtract the TER from it year after year.
Taxing a bitcoin ETP in Germany, Austria and Switzerland
In Germany, the ETP was long seen as worse for tax purposes. That changed in 2025.
| Real bitcoin | Physically backed bitcoin ETP | |
|---|---|---|
| Germany | tax-free after one year; below that, gains up to €1’000 a year exempt | the same, if it securitises a claim to delivery of the bitcoin or their proceeds |
| Austria | 27.5% KESt (capital gains tax); bought by Feb 28, 2021: tax-free | 27.5% as a security, deducted by the bank |
| Switzerland (private assets) | capital gain tax-free, wealth tax on the value on Dec 31 | the same; the ETP appears in the bank's tax statement |
As of Nov 13, 2026. For Germany, the BMF (Federal Ministry of Finance) letter of Mar 6, 2025 (margin numbers 84 and 85) makes it clear: if the ETP only securitises a claim to delivery of the bitcoin held or to the proceeds from their sale, it is not a capital claim. Its sale is then a private sale transaction, as with real bitcoin, and tax-free after one year, as was already the case with Xetra-Gold.
If that claim is missing, for example with an unsecured tracker certificate or a fund, the Abgeltungsteuer (flat 25% withholding tax) plus solidarity surcharge applies, with no holding period. Whether your product securitises that claim is stated in the prospectus. Many issuers also put it in their tax information for Germany.
In Austria, the ETP is even more convenient: the custodian bank deducts the KESt automatically. But if you sell tax-free old holdings, meaning real bitcoin from before Mar 1, 2021, to buy an ETP, its future gains are taxable. Old holdings stay tax-free only as long as you keep them. The rules in detail are in Bitcoin taxes in Austria.
In Switzerland, both count as wealth. The bank reports the ETP in its tax statement; you enter real bitcoin yourself in the securities list (Wertschriftenverzeichnis) at the ESTV's rate. How that works is explained in Bitcoin taxes in Switzerland.
The risks: who stands between you and your bitcoin
With real bitcoin in your wallet, only your keys stand between you and the coins. With an ETP it's a chain:
- The issuer owes you the value. Its bankruptcy triggers the realisation of the collateral.
- The custodian holds the keys to the bitcoin. If it is hacked or commits fraud, the collateral is missing.
- The trustee would have to sell the bitcoin in an emergency and distribute the proceeds to investors.
- Your bank holds the security and executes your orders.
- The exchange has to be open for you to sell. If bitcoin falls 20% on a Saturday, at most trading venues you can only sell your ETP on Monday.
Every link is regulated, and we know of no case in which investors in a large, physically backed bitcoin ETP in Europe have lost money. The risk is small, but it is not zero, and it comes on top of the price risk. In the exchange collapses from Mt. Gox to FTX, customers ended up with dollars at the price on the day of insolvency, not their bitcoin.
Real bitcoin have other risks: if you lose your seed phrase and device, they're gone. But that risk is one you control yourself. How to keep it small is shown in the guide Storing bitcoin safely.
The Power Law applies equally to both
A physically backed ETP follows the bitcoin price, minus the fee. For the question of whether bitcoin is cheap or expensive right now, the wrapper makes no difference. On Nov 13, 2026, bitcoin stood about 3% above the floor of the Power Law model, in the Accumulation zone. So an ETP was just as far up or down as the coins themselves.
What the zones mean and how the model is calculated is in the methodology. Models are not a guarantee.
When a bitcoin ETP makes sense
An ETP is a useful tool if one of these reasons applies to you:
- Only a brokerage account allowed. Some investors may not hold a crypto account for professional reasons; others manage money in a company account or through an asset manager.
- No wallet wanted. For a small allocation you never want to touch, a cheap ETP is simpler than a hardware wallet.
- Simple inheritance. The ETP passes to your heirs with the brokerage account. Real bitcoin need a plan for that, as described in Inheriting bitcoin.
- Austria with bank-deducted KESt. If you don't want to declare the tax yourself, the ETP gives you everything in one tax report.
If you decide on an ETP, check four things: physically backed, a TER below 0.3% even after a discount ends, a well-known custodian, and for Germany the claim to delivery or proceeds in the prospectus.
When real bitcoin are the better choice
For most people who hold bitcoin for years, real bitcoin are the more direct route:
- You want to hold without an ongoing fee, for 20 years or longer.
- You want nobody to be able to block, freeze or liquidate your bitcoin.
- You want to use bitcoin: send it, pledge it as collateral for a loan, or one day live off it, without exchange hours.
- You're willing to spend one afternoon on a wallet and a backup. The academy, stage 2: understand and secure guides you through it.
If you want to keep your brokerage account, you can also use both: a small ETP for an allocation in the account and real bitcoin for your actual reserve. Why a bitcoin stock like Strategy is no substitute for that is explained in Bitcoin stock or bitcoin.
Decide in three questions
- Can you, or do you want to, use only a brokerage account? Yes: a cheap, physically backed ETP. No: go on to question 2.
- Will you hold for longer than five to ten years? Yes: real bitcoin are cheaper over time. The ongoing fee eats more with every year.
- Do you ever want to use the bitcoin or protect them from third parties? Yes: only real bitcoin with your own keys can do that.
Frequently asked questions
What is a bitcoin ETP?
An exchange-traded security that tracks the bitcoin price. Legally it is usually a debt security of the issuer, backed by real bitcoin held by a custodian. You buy it through your brokerage account and pay a management fee every year.
Is a bitcoin ETP safe?
Physically backed ETPs are regulated, and the bitcoin serve as collateral for investors. Still, you depend on the issuer, custodian, trustee and bank. In an emergency you would receive money instead of bitcoin. Unsecured tracker certificates also carry the full default risk of the issuer.
Is a bitcoin ETP tax-free after one year?
In Germany yes, if it securitises a claim to delivery of the bitcoin held or to the proceeds from their sale. That is what the BMF letter of Mar 6, 2025, says. In Austria you pay 27.5% KESt; in Switzerland, private capital gains are tax-free anyway.
What does a bitcoin ETP cost?
The cheap products cost 0.05 to 0.25% a year, some older ones 1.49 or 2.00% (justETF, as of Nov 12, 2026). On top come the order fee and spread when you buy. Watch out for temporary discounts after which the fee goes up.
Can I have the bitcoin from an ETP paid out to me?
Usually not directly. Creation and redemption normally run through the issuer's large trading partners. Some ETPs allow delivery to investors, but with conditions such as a minimum amount, wallet checks and a fee. It's simpler to sell the ETP and buy real bitcoin.
Are there bitcoin ETFs in Germany?
Not in the strict sense. Funds under EU law may not hold only bitcoin, and US spot ETFs lack the key information document for retail investors in the EU. What German exchanges offer are bitcoin ETPs, which work in a similar way economically.
Sources
- justETF: Bitcoin-ETPs mit TER und Fondsgröße, Stand 12.11.2026 (bitcoin ETPs with TER and fund size, as of Nov 12, 2026)
- BMF-Schreiben vom 06.03.2025: Einzelfragen zur ertragsteuerrechtlichen Behandlung bestimmter Kryptowerte, Rn. 84–85 (German Finance Ministry letter on the income tax treatment of certain crypto assets)
- 21Shares: Krypto-ETPs und die deutsche Steuerbehandlung, 01.09.2025 (crypto ETPs and German tax treatment)
- BMF Österreich: Steuerliche Behandlung von Kryptowährungen (Austrian tax treatment of cryptocurrencies)
- HANetf: Bitwise Core Bitcoin ETP (BTC1), Verwahrer und Besicherung (custodian and collateral)
- iShares: Bitcoin ETP (IB1T), TER 0,15 % bis 31.12.2026, danach 0,25 % (TER 0.15% until Dec 31, 2026, then 0.25%)
- SEC: Erklärung zur Zulassung der Bitcoin-Spot-ETFs, 10.01.2024 (statement on the approval of spot bitcoin ETFs, Jan 10, 2024)
Not financial, legal or tax advice. Models are no guarantee.
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