In January 2024, the US Securities and Exchange Commission (SEC) approved the creation of several Bitcoin "spot" ETFs, enabling investors to directly track the price of Bitcoin via regulated, transparent funds.
However, the situation in Europe is different. European investors access Bitcoin through ETNs (Exchange Traded Notes), which replicate Bitcoin's performance but have distinct legal and fiscal structures compared to ETFs.
ETF vs ETN
- ETF: A fund directly holding the asset (Bitcoin).
- ETN: A debt security issued by financial entities (e.g., CoinShares, 21Shares) backed by actual Bitcoin held in custody.
Why no Bitcoin ETFs in Europe?
Due to Europe's UCITS Directive, ETFs must be diversified.
A product based solely on Bitcoin does not meet this requirement. It would not be possible to have an European ETF with 100% bitcoin exposure due to this directive.
Practically, though, this distinction is minimal since European crypto ETNs are physically collateralized with real Bitcoins.
Best Bitcoin ETNs in Europe
Below are the best ETNs, selected for their performance and annual cost (TER):
| Name | ISIN | Annual Cost (TER) | Fund Size (Million €) |
|---|---|---|---|
| CoinShares Physical Bitcoin | GB00BLD4ZL17 | 0.25% | +1,500 |
| WisdomTree Physical Bitcoin | GB00BJYDH287 | 0.15% | +1,050 |
| iShares Bitcoin ETP* | XS2940466316 | 0.15% | +270 |
| VanEck Bitcoin ETN | DE000A28M8D0 | 1.00% | +640 |
| 21Shares Bitcoin ETP | CH0454664001 | 1.49% | +750 |
| Bitwise Physical Bitcoin ETP | DE000A27Z304 | 2.00% | +1,140 |
*On March 18, 2025, BlackRock launched the iShares Bitcoin ETP at a TER of 0.15%, increasing to 0.25% by year's end. It mirrors the largest Bitcoin ETF available in the US and globally, the iShares Bitcoin Trust ETF (IBIT).
While the iShares Bitcoin ETP is pretty recent, it has been competitive with the other ETNs available (it's the yellow line in the graph):
Performance Comparison
If you want to compare the performance of several Bitcoin ETFs, you can do so on JustETF. Below, we compare them based on Tradingview, another tool.
1-Year Performance (ending June 10, 2025)
- CoinShares Physical Bitcoin
- WisdomTree Physical Bitcoin
- VanEck Bitcoin ETN
- 21Shares Bitcoin ETP
- Bitwise Physical Bitcoin ETP
3-Year Performance
- WisdomTree Physical Bitcoin
- CoinShares Physical Bitcoin
- VanEck Bitcoin ETN
- 21Shares Bitcoin ETP
- Bitwise Physical Bitcoin ETP
How to Choose the Best ETN?
Consider:
- Annual fees (TER): Lower is better.
- Liquidity: Look at daily volume and bid-ask spreads.
- Exchange Listing: Prefer Euronext (Amsterdam, Paris, Lisbon) or Xetra (Germany).
- Issuer reputation: Trusted names include CoinShares, Bitwise, WisdomTree, VanEck, iShares (BlackRock).
How to invest in a Bitcoin ETN (step-by-step)
If you want to invest in an ETN, you'll need a broker. We have made an article comparing the best European brokers - feel free to explore it!
In this case, we'll be using Interactive Brokers, one of our brokers recommend.
We will be buying ETN CoinShares Physical Bitcoin, the biggest one by assets under management in Europe.
Step 1 - search for your desired ETN
Copy the ISIN (GB00BLD4ZL17) in the search bar. Several instruments will appear. Choose the one quoted in Euros, to avoid paying currency conversion costs:
Step 2 - click "buy"
As you can see, we are in the Swiss stock exchange (SIX Swiss Exchange). Click "Buy"
ETN vs direct Bitcoin investment
ETN Advantages:
- Easy trading, like a stock
- No private key management
ETN Disadvantages:
- Ongoing fees (0.15%-2%)
- Limited trading hours
- Issuer risk
Direct Bitcoin Advantages:
- Full control over private keys: "not your keys, not your coins"
- Zero recurring holding costs
Direct Bitcoin Disadvantages:
- Managing private keys (risk of total loss)
- Complex operational steps
Conclusion
Top ETNs to consider:
- CoinShares Physical Bitcoin: Best recent (1-year) performance, backed by a strong European issuer.
- iShares Bitcoin ETP: Backed by global giant BlackRock, low fees.
- WisdomTree Physical Bitcoin: Best 3-year performance, low cost, suitable for long-term investors.
Explore the ETNs available directly on JustETF - it's important that you do your own research!
Remember: crypto investments are highly speculative and can result in total capital loss.
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