Are Bitcoin ETFs available in Europe?

European investors can access Bitcoin via ETPs like WisdomTree's BTCW or 21Shares' SBTC, offering crypto exposure without direct ownership.

Jul 19, 2025 at 11:14 am

Understanding Bitcoin ETFs and Their Relevance

Bitcoin Exchange-Traded Funds (ETFs) are investment vehicles that track the price of Bitcoin and trade on traditional stock exchanges. These funds allow investors to gain exposure to Bitcoin without directly owning the cryptocurrency, making them a popular choice for institutional and retail investors alike. The concept of a Bitcoin ETF has gained traction globally due to its potential to bring more legitimacy, liquidity, and regulatory oversight to the crypto market.

In Europe, where financial markets are highly developed and regulated, the demand for Bitcoin ETFs is growing steadily, especially as digital assets become more mainstream. However, their availability is closely tied to regulatory frameworks and approvals from financial authorities across different European countries.

Regulatory Landscape in Europe

The regulatory environment for Bitcoin ETFs in Europe varies by country but is largely governed by the European Securities and Markets Authority (ESMA). ESMA provides overarching guidelines, while individual national regulators such as the UK Financial Conduct Authority (FCA) or the German Federal Financial Supervisory Authority (BaFin) make final decisions regarding product approvals.

As of now, Europe does not have a fully-fledged spot Bitcoin ETF, similar to what was recently approved in the United States. However, several providers offer Bitcoin ETPs (Exchange Traded Products) that function similarly to ETFs. These ETPs are typically structured as debt instruments backed by physical Bitcoin held by the issuer.

Available Bitcoin-Linked Products in Europe

Although spot Bitcoin ETFs are not yet available in Europe, there are Bitcoin ETPs listed on major European exchanges such as the Deutsche Börse and SIX Swiss Exchange. Providers like 21Shares (formerly HODL1), WisdomTree, and CoinShares offer a range of products that give investors exposure to Bitcoin's price movements.

These ETPs are traded like stocks and can be accessed through traditional brokerage accounts. For example:

• WisdomTree Physical Bitcoin (BTCW) is listed on Euronext Amsterdam.
• 21Shares Bitcoin ETP (SBTC) is available on the Swiss SIX exchange.
• CoinShares Physical Bitcoin (BIBI) offers exposure to Bitcoin via London Stock Exchange.

These products differ from ETFs in legal structure but serve a similar purpose: allowing investors to participate in Bitcoin’s performance without managing private keys or wallets.

Steps to Invest in Bitcoin ETPs in Europe

For European investors interested in gaining exposure to Bitcoin via ETPs, the process involves several key steps:

• Choose a Brokerage Platform: Ensure your broker supports trading of ETPs listed on European exchanges.
• Research Available Products: Compare fees, structures, and underlying asset backing of various Bitcoin ETPs.
• Open or Log into Your Trading Account: Access your brokerage account and ensure it is funded.
• Search for the ETP Ticker Symbol: Use the correct ticker symbol to place an order for the desired Bitcoin ETP.
• Place a Buy Order: Decide between market orders and limit orders based on current market conditions.
• Monitor Holdings Regularly: Track performance and stay informed about any changes in the ETP structure or regulatory developments.

Each step requires careful attention to detail, especially when confirming whether the platform supports cross-border trades and understands the tax implications associated with holding crypto-linked securities.

Tax and Reporting Considerations

Investing in Bitcoin ETPs in Europe comes with specific tax obligations, which vary depending on the investor’s country of residence. In many jurisdictions, gains from ETPs may be subject to capital gains tax, while dividends (if any) might be taxed differently.

It is crucial for investors to consult with a local tax advisor familiar with cryptocurrency regulations. Additionally, some platforms automatically report transactions to local tax authorities, particularly within the EU’s Common Reporting Standard (CRS) framework.

Investors should also be aware of withholding taxes that may apply if the ETP is domiciled in another jurisdiction. Understanding these nuances helps avoid unexpected liabilities and ensures compliance with local laws.

Frequently Asked Questions (FAQs)

Q: Can I buy Bitcoin ETFs directly in Europe?

A: Currently, Europe does not have spot Bitcoin ETFs, but investors can access Bitcoin ETPs that offer similar exposure and functionality.

Q: Are Bitcoin ETPs safe compared to direct crypto ownership?

A: Bitcoin ETPs eliminate the need for private key management, which enhances security for many investors. However, they still carry market risk and depend on the creditworthiness of the issuer.

Q: How do Bitcoin ETPs differ from actual Bitcoin ownership?

A: While ETPs reflect Bitcoin’s price, they do not grant ownership of the underlying asset. Investors hold shares in the ETP rather than actual coins, which means they rely on the issuer’s custody arrangements.

Q: Which European countries offer the most accessible Bitcoin ETPs?

A: Germany, Switzerland, and the Netherlands are among the most active markets for Bitcoin ETPs, with listings on major exchanges like Deutsche Börse, SIX Swiss Exchange, and Euronext.