The best Bitcoin ETFs/ETNs
How to invest in Bitcoin using ETFs/ETNs
How do I invest in Bitcoin?
Bitcoin is a cryptocurrency. The currency is independent of conventional, governmental currency systems such as the Dollar or the Euro and regulates the right of ownership through the possession of computer-generated keys. Payments are cryptographically legitimised and processed via a network of computers with equal rights - without the need for a bank. A decentralised, synchronised accounting system, the so-called blockchain, is used for administration. The exchange rate of a bitcoin to conventional currencies follows the principle of pricing on a stock exchange.Bitcoin is the oldest cryptocurrency and has been used since 2009. New bitcoin units are created by solving cryptographic challenges, known as mining, and require large amounts of energy and computing capacity. The capacity of bitcoins is considered limited by the algorithm used in bitcoin.
Investors can use Bitcoin-ETNs to participate in the returns of physical Bitcoin holdings. The diversification principles of the regulatory investment fund framework (UCITS) do not allow to launch a UCITS fund with only one constituent. Due to this fact, bitcoin is mainly available as an exchange-traded note (ETN) in European countries.
Bitcoin ETFs are available in the USA
At the beginning of 2024, the authorisation of Bitcoin ETFs, or more precisely ETFs based on the Bitcoin spot price, was approved in the USA. Several Bitcoin spot ETFs from various providers are available in the USA now, like the iShares Bitcoin Trust ETF (IBIT) from BlackRock and the Fidelity Advantage Bitcoin ETF (FBTC). Important in this context: The legal situation for funds and ETFs in the USA differs from that in Europe. This is because there are no Bitcoin ETFs in the EU due to the legal framework provided by the UCITS directives. We have summarised the most important questions and answers on the topic of Bitcoin ETFs for you here:Bitcoin ETFs in the USA: What is it all about?
The release of Bitcoin ETFs in the USA, which was hotly debated in the media at the beginning of 2024, relates to the release of Bitcoin spot ETFs by the US Securities and Exchange Commission (SEC). Previously, the only Bitcoin ETFs available in the US were based on futures contracts for the cryptocurrency. This allowed investors to participate in the performance of Bitcoin and Co. but not to invest directly in physically backed Bitcoin ETFs. The new Bitcoin ETFs should now solve this problem and also enable institutional investors such as Blackrock and Co. to invest in Bitcoin in a regulated and exchange-traded form.
Bitcoin ETFs from iShares and Co.: What does this mean for the crypto market?
The topic is currently on everyone's lips: iShares, VanEck and Co. want to launch Bitcoin ETFs in the USA. Unlike previous Bitcoin ETFs, however, these are physically collateralised and track the spot price of the cryptocurrency. Until now, there have only been crypto ETFs on derivatives - so-called futures.
What does this mean for the Bitcoin price? Basically, the more institutional money flows into crypto (Bitcoin), the more the asset class will (probably) establish itself. Whether this has an overall price-driving effect depends on whether the entry of institutional investors into the new Bitcoin ETFs has already been priced in and how much money will flow into the new spot ETFs in years to come. However, the Bitcoin and crypto market already recorded significant gains a few weeks before the products were released at the beginning of 2024.
Are Bitcoin ETFs also coming to Europe?
No. Unlike in the USA, the UCITS Directive applies in Europe. This states that ETFs can only be authorised in the EU if there is a minimum level of diversification. This is not the case for a product with only one value (Bitcoin). ETF fans in the EU will therefore have to continue to rely on the crypto ETNs that are already available. In practice, however, this only makes a minor difference, as many crypto ETNs in Europe - like the products in the US - are "physically" backed by cryptocurrencies.
Blockchain ETFs provide an opportunity to invest in the fast-growing crypto market via ETFs, though. The indices tracked by such ETFs are composed of companies that deal with infrastructure, processes and technologies related to the blockchain technology.
In this investment guide you will find all physically backed ETNs that allow you to invest in bitcoin. For an overview of all currently available crypto ETNs, see our investment guide on cryptocurrencies.
Bitcoin performance
1 month: 41,23%
1 year: 156,20%
3 years: 65,82%
5 years: 1.021,93%
Bitcoin ETFs/ETNs in comparison
The most important factors at a glance
When choosing a Bitcoin ETF or ETN one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all Bitcoin ETFs/ETNs with details on size, cost, age, income, domicile and replication method ranked by fund size.
Compare all Bitcoin ETFs/ETNs in detail
Compare all Bitcoin ETFs/ETNs in a chart
| Provider ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| ETC Group Physical BitcoinDE000A27Z304 | 1.289 | 2,00% p.a. | Accumulerend | Duitsland | Fysiek gedekt | |
| CoinShares Physical BitcoinGB00BLD4ZL17 | 1.282 | 0,35% p.a. | Accumulerend | Jersey | Fysiek gedekt | |
| 21Shares Bitcoin ETPCH0454664001 | 894 | 1,49% p.a. | Accumulerend | Zwitserland | Fysiek gedekt | |
| WisdomTree Physical BitcoinGB00BJYDH287 | 881 | 0,35% p.a. | Accumulerend | Jersey | Fysiek gedekt | |
| VanEck Bitcoin ETNDE000A28M8D0 | 627 | 1,00% p.a. | Accumulerend | Liechtenstein | Fysiek gedekt | |
| 21Shares Bitcoin Core ETPCH1199067674 | 201 | 0,21% p.a. | Accumulerend | Zwitserland | Fysiek gedekt | |
| Fidelity Physical Bitcoin ETPXS2434891219 | 139 | 0,35% p.a. | Accumulerend | Duitsland | Fysiek gedekt | |
| AMINA Bitcoin ETPCH0558875933 | 112 | 0,75% p.a. | Accumulerend | Zwitserland | Fysiek gedekt | |
| DDA Physical Bitcoin ETPDE000A3GK2N1 | 22 | 0,95% p.a. | Accumulerend | Duitsland | Fysiek gedekt | |
| Global X Bitcoin ETPGB00BLBDZV05 | 5 | 0,00% p.a. | Accumulerend | Jersey | Fysiek gedekt | |
| 1Valour Bitcoin Physical Carbon NeutralGB00BQ991Q22 | 1 | 1,49% p.a. | Accumulerend | Jersey | Fysiek gedekt |
Source: justETF.com; As of 20-11-2024
Return comparison of all Bitcoin ETFs/ETNs
The table shows the returns of all Bitcoin ETFs/ETNs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.
| ETF | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| 21Shares Bitcoin Core ETP | 14,11% | 5,86% | 13,69% | 100,91% | - | |
| WisdomTree Physical Bitcoin | 13,98% | 5,92% | 13,98% | 100,39% | 20,79% | |
| CoinShares Physical Bitcoin | 14,03% | 5,92% | 14,03% | 100,35% | 18,53% | |
| VanEck Bitcoin ETN | 13,96% | 5,91% | 13,82% | 99,94% | 20,61% | |
| Fidelity Physical Bitcoin ETP | 13,70% | 5,97% | 13,30% | 99,69% | - | |
| AMINA Bitcoin ETP | 13,59% | 5,73% | 14,00% | 99,68% | 20,81% | |
| DDA Physical Bitcoin ETP | 13,97% | 5,72% | 13,77% | 99,37% | 19,62% | |
| Global X Bitcoin ETP | 13,98% | 6,01% | 14,06% | 98,94% | - | |
| 1Valour Bitcoin Physical Carbon Neutral | 14,21% | 5,77% | 13,65% | 98,27% | - | |
| 21Shares Bitcoin ETP | 13,78% | 5,37% | 12,73% | 97,84% | 17,87% | |
| ETC Group Physical Bitcoin | 13,65% | 5,14% | 12,52% | 96,75% | 13,86% |
| ETF | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| Fidelity Physical Bitcoin ETP | 69,50% | 144,81% | - | - | - | |
| 1Valour Bitcoin Physical Carbon Neutral | 68,38% | - | - | - | - | |
| CoinShares Physical Bitcoin | 67,67% | 147,26% | -63,93% | - | - | |
| WisdomTree Physical Bitcoin | 67,60% | 147,73% | -63,87% | 79,58% | 263,52% | |
| 21Shares Bitcoin Core ETP | 67,17% | 149,73% | - | - | - | |
| DDA Physical Bitcoin ETP | 67,02% | 147,37% | -63,81% | - | - | |
| Global X Bitcoin ETP | 67,02% | 149,71% | - | - | - | |
| AMINA Bitcoin ETP | 66,76% | 149,01% | -63,88% | 80,95% | - | |
| ETC Group Physical Bitcoin | 66,57% | 141,68% | -62,48% | 74,80% | - | |
| VanEck Bitcoin ETN | 66,33% | 150,00% | -63,48% | 80,68% | - | |
| 21Shares Bitcoin ETP | 64,99% | 146,48% | -63,54% | 80,17% | 249,79% |
Source: justETF.com; As of 31-10-2024; Calculations in EUR including dividends