How to invest in Bitcoin using ETFs/ETCs

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 central, 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-ETCs 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 commodity (ETC) in European countries.

In this investment guide you will find all physically backed ETCs that allow you to invest in bitcoin. Currently, there is 1 ETC available.
 

When choosing a Bitcoin ETF or ETC 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/ETCs with details on size, cost, age, income, domicile and replication method ranked by fund size.

Compare all Bitcoin ETFs/ETCs in detail
Compare all Bitcoin ETFs/ETCs in a chart

Source: justETF.com; As of 15.01.21

Return comparison of all Bitcoin ETFs/ETCs

The table shows the returns of all Bitcoin ETFs/ETCs 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.

Source: justETF.com; As of 31.12.20; Calculations in EUR including dividends