Dossiers
Bitcoin ETF dossier
Since US spot ETFs were approved in 2024, a regulated route has existed for institutional money to reach bitcoin. European investors generally cannot access those funds and use exchange traded products listed in Europe instead. This dossier sets out the differences, including costs and risks.
Timeline
- SEC approves the first US spot bitcoin ETFs.
- First spot ether ETFs begin trading in the US.
- European ETPs remain the main route for EU investors.
ETF versus ETP in Europe
US spot ETFs fall outside European fund rules and are therefore rarely offered to EU retail investors. In Europe, exposure typically runs through an exchange traded product: a debt instrument backed by physical bitcoin held with a custodian.
An ETP is legally not a diversified fund but an obligation of an issuer. The key checks are whether backing is physical, who the custodian is, and how claims rank in insolvency.
- Physically backed or synthetic with a counterparty?
- Who is the custodian and how is custody segregated?
- What is the annual fee and the exchange spread?
Costs and tracking
Beyond the management fee, usually between a few tenths of a percent and 1.5%, you pay broker commissions and the exchange spread. At low volumes that spread can outweigh the fee.
Products do not track bitcoin perfectly. Differences arise from costs, valuation timing and limited trading outside exchange hours while the crypto market keeps running.
Self-custody or exchange-listed
An ETP buys exposure inside your existing brokerage account, with no wallets or keys. In exchange you give up crypto's defining feature: you do not own the coin and cannot transfer or use it.
Holding it yourself gives full control and no ongoing fee, but demands your own security and record-keeping. The choice depends on how much operational work you want and your tax position.
Frequently asked questions
Can EU retail investors buy a US bitcoin ETF?
Usually not. Without a European information document, brokers may not offer these funds to retail clients; European ETPs are the common alternative.
Do I own bitcoin when I buy an ETP?
No. You hold a claim on the issuer, which keeps bitcoin with a custodian. Transferring to your own wallet is generally not possible.
How is an ETP taxed?
It varies by country and product structure. In the Netherlands it usually falls in box 3; in Belgium it depends on the instrument. Consult an adviser.