Bitcoin has evolved from a niche digital experiment into a mainstream financial asset, attracting both retail and institutional investors seeking diversification and long-term growth. One of the most secure and accessible ways to gain exposure to Bitcoin is through a physically backed Exchange-Traded Product (ETP). The CoinShares Physical Bitcoin ETP offers a regulated, transparent, and cost-effective solution for investors who want to add Bitcoin to their portfolios without managing digital wallets or private keys.
👉 Discover how a Bitcoin ETP can simplify your crypto investing journey.
What Is a Physically Backed Bitcoin ETP?
A Bitcoin ETP is a financial instrument traded on traditional stock exchanges, designed to track the price of Bitcoin. Unlike synthetic products that use derivatives, a physically backed ETP holds actual Bitcoin in secure custody. Each share represents ownership of a specific fraction of real Bitcoin, stored with an institutional-grade custodian.
The CoinShares Physical Bitcoin ETP is 100% backed by real Bitcoin, ensuring a direct correlation between the product’s value and the underlying cryptocurrency. This structure minimizes counterparty risk and enhances trust through full asset backing.
Why Choose a Physical Bitcoin ETP?
- Security: Your investment is backed by real Bitcoin held in cold storage.
- Transparency: Daily proof-of-reserves data is publicly verifiable.
- Accessibility: Trade like any stock through your existing brokerage account.
- Regulatory Compliance: Listed on major European exchanges under strict oversight.
How Does It Work?
Each share of the CoinShares Physical Bitcoin ETP corresponds to a defined amount of actual Bitcoin, known as the Coin Entitlement. This value is updated daily and reflects how much Bitcoin each ETP share entitles the holder to.
The underlying Bitcoin is securely stored by Komainu, a regulated digital asset custodian jointly developed by Nomura, Ledger, and CoinShares. This institutional-grade security ensures protection against theft, loss, and unauthorized access.
Investors can monitor reserves in real time using the LedgerLens tool, which provides independent verification of holdings by The Network Firm. This level of transparency sets physically backed ETPs apart from other crypto investment vehicles.
👉 See how real-time reserve verification builds investor confidence.
Key Benefits of Investing in a Bitcoin ETP
1. Seamless Integration with Traditional Portfolios
You don’t need a crypto wallet or exchange account. Simply buy shares through your regular brokerage platform—just like stocks or ETFs.
2. Full Transparency and Auditability
Unlike opaque funds or unregulated platforms, the CoinShares ETP publishes daily proof-of-reserves. Investors can independently verify that assets are fully backed at all times.
3. Lower Operational Risk
Holding Bitcoin directly requires technical expertise in private key management and cybersecurity. A physical ETP removes these complexities, making it ideal for traditional investors.
4. Diversification Without Correlation
Bitcoin has historically shown low correlation with traditional assets like equities and bonds. Adding a small allocation (e.g., 1–5%) may enhance portfolio returns while managing overall risk.
"A small allocation to Bitcoin can significantly impact your portfolio without greatly increasing risk." – CoinShares Research
Where Can You Trade the Bitcoin ETP?
The CoinShares Physical Bitcoin ETP is listed across multiple European exchanges in various currencies, offering flexibility for global investors:
- Germany: Xetra (EUR) – Ticker: BITC GY
- Netherlands: Euronext Amsterdam (EUR) – Ticker: BITC NA
- France: Euronext Paris (EUR) – Ticker: BITC FP
- Switzerland: SIX Swiss Exchange (USD, CHF, EUR, GBP) – Ticker: BITC SE
- United Kingdom: London Stock Exchange (USD, GBP) – Ticker: BITC LN / BITP LN
All listings share the same ISIN: GB00BLD4ZL17, ensuring consistent identification across markets.
How to Buy the CoinShares Physical Bitcoin ETP
Getting started is simple:
- Copy the Product ID
Note the ISIN (GB00BLD4ZL17) or ticker symbol based on your preferred exchange and currency. - Log In to Your Brokerage Account
Use your existing investment platform or open a new one that supports stock trading. - Search for the ETP
Enter the ISIN or ticker to locate the correct product. - Place Your Order
Specify the number of shares you wish to purchase and confirm the trade.
No crypto wallets, no private keys—just seamless exposure to Bitcoin through familiar financial infrastructure.
Frequently Asked Questions (FAQ)
Q: Is the Bitcoin ETP really backed by real Bitcoin?
A: Yes. Every share is fully backed by actual Bitcoin held in secure cold storage with Komainu, an institutional-grade custodian.
Q: Can I redeem my shares for physical Bitcoin?
A: Yes, registered holders can apply for physical redemption under specific conditions outlined in the product documentation.
Q: How is the value of each share determined?
A: The share value is based on the Coin Entitlement—the amount of Bitcoin each share represents—adjusted daily according to market prices.
Q: What are the main risks involved?
A: As with any investment in cryptocurrency, there is volatility risk. The price of Bitcoin can fluctuate significantly, and past performance does not guarantee future results.
Q: Are there ongoing fees or management costs?
A: The product has an annual management fee; detailed cost information is available in the prospectus and Key Information Document (KID).
Q: How transparent is the reserve verification process?
A: Fully transparent. Reserves are audited regularly and published via LedgerLens, allowing anyone to verify holdings in real time.
Core Keywords
- Bitcoin ETP
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Final Thoughts
For investors seeking a secure, compliant, and straightforward way to access Bitcoin, the CoinShares Physical Bitcoin ETP stands out as a leading option. By combining full physical backing, real-time transparency, and ease of trading on regulated markets, it bridges the gap between traditional finance and digital assets.
Whether you're building a diversified portfolio or exploring alternative investments, integrating a trusted Bitcoin ETP can offer meaningful exposure to one of the most transformative financial innovations of the 21st century.
👉 Learn how regulated crypto products are shaping the future of investing.