An Exchange Traded Product (ETP) is the collective term for exchange-listed securities that track an underlying asset or index. ETPs trade on regulated stock exchanges during standard market hours, with prices determined by continuous auction rather than a single daily fixing. In Europe, three structures are in common use:
A crypto ETP is an exchange-listed security that provides price exposure to one or more digital assets - such as Bitcoin or Ethereum - without requiring the investor to hold the underlying asset directly. The product trades on regulated European stock exchanges and is accessible through standard securities accounts.
Bitwise's crypto ETPs are structured as fully collateralised, open-ended debt securities (ETCs or collateralised ETNs). Each unit in issue corresponds to a defined cryptocurrency entitlement, backed 1:1 by the underlying cryptocurrency, held in institutional cold-storage custody by regulated, specialist custodians and subject to a pledge in favour of the independent Security Trustee for the benefit of noteholders. The structure eliminates the need for investors to manage private keys, interact with crypto exchanges, or deal with the operational complexity of direct digital asset ownership.
While the ETP itself is a regulated financial instrument admitted to trading on regulated markets under MiFID II, the underlying crypto assets are not regulated financial instruments in the same way as equities or bonds and are not subject to the same investor protection framework. The value of the ETP is driven by the price of the underlying cryptocurrency, which can be highly volatile.
The cryptocurrency entitlement is the defined quantity of the underlying crypto token backing each individual ETP unit. It is set at the time of issuance and decreases marginally each day at a rate equivalent to the annual Total Expense Ratio (TER) - this is how the management fee is accrued, rather than as a separate cash deduction.
For example, if a Bitcoin ETP has an entitlement of 0.001 BTC per unit and a TER of 1% per annum, the entitlement will reduce by approximately 0.00001 BTC over the course of one year. The market price of the ETP reflects this entitlement multiplied by the current price of the underlying cryptocurrency.
For staking ETPs, the mechanism works in reverse: staking rewards are credited to the entitlement daily, net of the staking service fee, meaning the quantity of cryptocurrency per ETP unit gradually increases over time to reflect accumulated net staking returns.
The current cryptocurrency entitlement per unit for each product is published on the relevant product page or in the documents section for cryptocurrency entitlement at bitwiseinvestments.eu.
The structural difference is material from a regulatory standpoint, whereby functionally the products are very similar:
ETFs are subject to UCITS requirements, which mandate diversification and prohibit direct physical commodity holdings at the fund level. As a result, a single-asset physically-backed crypto ETF is not permissible under UCITS in Europe.
Crypto ETPs or ETCs are asset-backed securities - structured as debt instruments collateralised by the underlying asset held in regulated custody. They carry no UCITS diversification requirement and are therefore the appropriate vehicle for single-asset physical crypto exposure in European markets. Just as a physically-backed gold ETC holds allocated gold bars in a secured vault on behalf of investors, a physically-backed crypto ETC holds the underlying cryptocurrency in institutional cold-storage custody.
In both cases, the collateral is ring-fenced from the issuer: in the event of issuer insolvency, the underlying assets are subject to a pledge in favour of an independent Security Trustee acting for the benefit of noteholders.
Bitwise's products are ETCs. They are sometimes listed under the ETN category on exchange systems such as XETRA for administrative classification purposes - this is a listing convention, not a structural description. The products are fully collateralised and function as ETCs.
The distinction is significant for counterparty and credit risk assessment:
An ETN traditionally is an unsecured debt obligation of the issuer. If the issuer defaults, the investor's recourse is as an unsecured creditor - there is no dedicated collateral pool to fall back on. Recovery depends entirely on the issuer's financial condition at the time of default.
An ETC is a collateralised debt security. The underlying assets are held in segregated, regulated custody and are subject to a pledge in favour of noteholders via an independent Security Trustee. The issuer cannot access or redirect those assets unilaterally. In the event of issuer insolvency, the Trustee enforces its security interest over the custody and issuance accounts to effect an orderly wind-down for the benefit of noteholders.
ETP taxonomy - European market:
ETP
Unbacked: unsecured issuer obligation; full credit risk to investor Backed ETC: physically collateralised; assets ring-fenced via trustee (See Bitwise ETP structure overview)
Physical (UCITS): available for equities/bonds; not permissible for single-asset crypto Synthetic: derivative-based replication; not applicable to Bitwise products
Yes. Bitwise's ETPs are regulated financial instruments. The base prospectus is approved by BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht, Germany), and a separate prospectus used for any public offer in the United Kingdom is approved by the UK's Financial Conduct Authority. Each product is listed on regulated European exchanges - including Deutsche Börse XETRA and the London Stock Exchange - and is subject to the relevant exchange rules and MiFID II requirements.
Investors should note that regulatory approval of the ETP structure does not extend to the underlying crypto assets themselves. Bitcoin, Ethereum, and other digital assets are not regulated financial instruments. The regulatory framework governs the product wrapper, the issuer, and the conduct of market participants - not the price behaviour of the underlying asset.
Product-specific regulatory status may vary by jurisdiction. Investors and distributors should verify that each product is appropriately registered or passported in their jurisdiction before distribution or investment.
ETP units are acquired on exchange through any brokerage or custody account with access to the relevant listing venue. Investors place orders during exchange trading hours in the same manner as for equities or ETFs, referencing the product's name, ticker symbol or ISIN. No crypto exchange account, digital wallet, or digital asset custody arrangement is required from the investor's perspective.
Professional and institutional investors may additionally access the primary market through the network of Authorised Participants (APs), which permits creation and redemption of ETP units directly against the underlying cryptocurrency. This route is subject to minimum size thresholds, KYC/AML requirements applicable to the legal entity and the provenance of the cryptocurrency, and the terms agreed with the relevant AP.
Bitwise ETPs are listed across major European venues including Deutsche Börse XETRA, the London Stock Exchange (LSEG), SIX Swiss Exchange, Euronext (Paris and Amsterdam), Borsa Italiana, Nasdaq Stockholm, Wiener Börse, Börse Frankfurt, gettex, and Tradegate Exchange. Depending on the product and venue, units are denominated in EUR, USD, GBP, CHF, and SEK.
A full, current listing schedule for each product - including trading currencies and ISINs - is maintained on the main product overview page and the respective product pages at bitwiseinvestments.eu.
The market price of each ETP reflects the value of its underlying cryptocurrency entitlement, adjusted for the accrued management fee. The cryptocurrency entitlement is the defined quantity of the underlying crypto token backing each individual ETP unit. Authorised Participants and market makers provide continuous liquidity on exchange and utilise the creation/redemption mechanism to arbitrage any meaningful dislocation between the ETP's market price and the value of the underlying. In practice, this keeps the market price closely aligned with NAV throughout the trading day.
Liquidity providers include Jane Street, Virtu Financial, DRW Cumberland, Flow Traders, and SIG Susquehanna, among others. Market-making services and spread levels may vary by product and market conditions.
The Net Asset Value (NAV) per unit represents the cryptocurrency entitlement per ETP unit valued at the applicable daily reference rate. The cryptocurrency entitlement is the defined quantity of the underlying crypto token backing each individual ETP unit. NAV is calculated once per business day. Reference rates vary by product - for example:
The minimum purchase on exchange is one ETP unit, which represents the current market value of that unit's cryptocurrency entitlement. There is no additional minimum imposed by Bitwise at the product level.
Your broker or bank may apply their own minimum order sizes or transaction thresholds - these vary by platform and are not set by Bitwise. For most retail and professional brokerage platforms, one ETP unit can be purchased for a relatively modest amount depending on the current price of the underlying cryptocurrency.
Professional and institutional investors accessing the primary market via Authorised Participants are subject to minimum creation and redemption sizes defined in the relevant Final Terms.
No. Bitwise ETPs are exchange-listed securities and can only be bought or sold during the trading hours of the relevant stock exchange. For example, Deutsche Börse XETRA operates approximately 09:00 to 17:30 CET on business days. Trading is not available on weekends or public holidays.
The underlying cryptocurrency markets, however, operate 24 hours a day, seven days a week. This means that price movements in the underlying cryptocurrency outside exchange hours - including overnight, at weekends, or during public holidays - will be reflected in the ETP's opening price when the relevant exchange reopens.
Investors should be aware that significant moves in the underlying cryptocurrency can occur when the ETP is not tradeable. The NAV published each business day captures the closing reference price; the opening market price on the following trading day will reflect any movements that occurred in the interim.
The two approaches differ across several dimensions that are material to investors operating within the European financial system.
Portfolio integration: ETP units are held in a standard brokerage or custody account and appear on the same portfolio statement as equities and ETFs. Direct cryptocurrency holdings exist outside the traditional financial system and cannot be held in a standard securities account.
Trading venue: Crypto ETPs are listed on major regulated exchanges including XETRA, Euronext, Nasdaq Stockholm, and Borsa Italiana, with transparent order books, best-execution obligations, and regulatory oversight. Direct crypto is bought and sold on crypto exchanges operating under varying regulatory regimes, without the same investor-protection framework.
Custody: ETP units are held in a regulated brokerage account. The underlying cryptocurrency is held by a regulated, specialist custodian in institutional cold-storage custody. With direct investment, the investor either self-custodies - managing private keys and seed phrases, where loss means permanent loss of access - or relies on a crypto exchange whose custody standards and financial resilience may vary.
Regulation: Crypto ETPs are transferable securities admitted to trading on regulated markets and subject to MiFID II, BaFin approval (for Bitwise products), and exchange-level oversight. Direct cryptocurrency holdings are not classified as financial instruments under EU law and carry no equivalent regulatory framework.
Holding cryptocurrency directly introduces a set of operational and custodial risks that do not apply to ETP investors:
Private key risk: direct cryptocurrency ownership requires managing cryptographic private keys or seed phrases. If these are lost, stolen, or destroyed, access to the underlying assets is permanently and irrecoverably lost. There is no central administrator, no customer service function, and no legal recourse that can restore access.
Exchange counterparty risk: many investors hold crypto on centralised exchanges rather than in self-custody. This introduces counterparty risk: if the exchange becomes insolvent, is hacked, or freezes withdrawals, the investor's assets may be partially or wholly inaccessible. Crypto exchange deposits are not protected by deposit guarantee schemes.
Operational complexity: acquiring, securing, and managing direct crypto holdings requires technical knowledge of wallets, networks, and transaction mechanics. Errors - such as sending assets to the wrong address - are typically irreversible.
Regulatory exposure: the regulatory treatment of direct crypto holdings continues to evolve, including reporting obligations, AML requirements, and potential restrictions on certain asset types.
By contrast, ETP investors hold a regulated financial instrument in a standard securities account, with the underlying cryptocurrency held by institutional, regulated custodians under a pledge in favour of an independent Security Trustee. The investor has no direct exposure to private key management, exchange counterparty risk, or the operational complexity of self-custody.
In most EU jurisdictions, losses on crypto ETPs can be offset against gains on other financial instruments within the same tax year, because ETPs are classified as regulated financial instruments. This is a meaningful practical advantage over direct crypto investment, where losses are typically ring-fenced and can only be set against other crypto gains.
Germany: Losses from physically-backed crypto ETPs (Sachleistungsanspruch) can generally be set against other private disposal gains under Section 23 EStG, within the applicable holding period rules.
Italy: Losses from crypto ETPs may generally be offset against gains from other financial instruments classified as redditi diversi. Direct crypto losses are typically not offsettable against non-crypto gains.
France: ETP losses can be set against all capital gains on financial instruments in the same year under the standard PFU regime. Direct crypto losses under Article 150 VH bis CGI are restricted to other crypto gains in the same year.
Sweden: For ETPs held outside an ISK or kapitalförsäkring, losses can be offset against other capital gains. Direct crypto losses may be subject to separate classification by Skatteverket.
This information is provided for general guidance only and does not constitute tax advice. Tax treatment depends on individual circumstances and the laws of your country of residence, which may change. Investors should seek independent tax advice before making any investment decision. Capital at risk.
Yes. Each Bitwise ETP unit in issue corresponds to a defined cryptocurrency entitlement held in regulated, institutional cold-storage custody at all times. The entitlement per unit decreases daily at a rate equivalent to the annual TER - this is the mechanism by which the management fee is accrued; no separate cash fee is levied.
The underlying assets serve exclusively as collateral for ETP units outstanding and are not used for lending, rehypothecation, or securities financing transactions. For staking ETPs, a portion of the underlying assets is staked in accordance with the prospectus to generate staking rewards for the benefit of noteholders. Full details of the permitted uses of the underlying assets, including staking arrangements, are set out in the prospectus.
The digital assets backing Bitwise ETPs are held in institutional cold-storage by regulated, specialist digital asset custodians. Bitwise works exclusively with a select group of custodians, currently including:
The Independent Transaction Administrator - currently part of APEX Group - is appointed as an additional governance layer over all asset movements. Every transfer of the ETP's underlying cryptocurrency requires the Administrator's review and countersignature prior to execution. The Administrator holds legally enforceable veto rights over proposed transactions.
Additionally, the Administrator monitors custody balances independently of the issuer and publishes a weekly Proof of Holdings report, available on the Bitwise website, confirming that assets in custody equal or exceed the total cryptocurrency entitlement of all units in circulation at all times.
Bitwise introduced the Independent Transaction Administrator as a structural feature of its ETP framework when it launched the first centrally-cleared Bitcoin ETP on Deutsche Börse XETRA in June 2020 - the first time this additional governance layer had been incorporated into a crypto ETP structure in Europe.
An independent Security Trustee holds a security interest in all crypto assets backing the ETPs, for the benefit of noteholders. In the event of issuer insolvency, the Security Trustee takes control of the custody and issuance accounts and manages an orderly realisation of assets and settlement of noteholder obligations.
This structure is designed to be bankruptcy-remote: ETP units are held in investors' own securities accounts rather than on the issuer's balance sheet, and the underlying collateral is controlled by the Trustee rather than the issuer.
It should be noted that this structural protection addresses issuer insolvency risk - it does not protect against market risk or falls in the value of the underlying cryptocurrency.
Lending of the underlying crypto assets is prohibited by the prospectus. The digital assets held in custody serve exclusively as collateral for outstanding ETP units and are not lent, rehypothecated, or transferred for any securities financing purpose. For staking ETPs, they may be staked as described in the prospectus. All asset movements are subject to oversight and countersignature by the Independent Administrator.
This policy distinguishes Bitwise's ETPs from structures that engage in asset lending to generate additional yield - a practice that introduces counterparty risk not present in Bitwise's products.
Bitwise's UK management company, which oversees the Frankfurt-domiciled issuer, holds ISO/IEC 27001:2022 certification - the internationally recognised standard for information security management systems. Certification is issued by the British Assessment Bureau and requires independent audits to assess the adequacy of information security policies, procedures, and controls.
This certification reflects Bitwise's approach to operational governance. It does not eliminate operational risk but is intended to provide assurance that appropriate controls are in place and subject to independent review.
ETP units held in a regulated brokerage or custody account are classified as client assets - they are segregated from the broker's or bank's own balance sheet and do not form part of their estate in the event of insolvency. This means that if your broker or bank becomes insolvent, your ETP units are not available to their general creditors and should be returned to you or transferred to another institution.
This segregation is a regulatory requirement under MiFID II and applies to all financial instruments held in custody by regulated EU/EEA brokers and banks. It is distinct from, for example, uninvested cash, which may not have the same level of protection depending on the applicable deposit guarantee scheme and jurisdiction.
This is also different from the issuer insolvency scenario (i.e. Bitwise Europe GmbH becoming insolvent), which is addressed separately through the Security Trustee and pledge structure described in the product prospectus.
Investors should verify the specific client asset protection arrangements applicable in their jurisdiction with their broker or bank.
Crypto ETPs are high-risk financial instruments and are not appropriate for all investors. While the Bitwise ETP structure itself incorporates a number of investor-protection features - including 100% physical backing, segregated custody, an independent administrator, and a Security Trustee - these structural protections address issuer and operational risk, not market risk.
The value of a crypto ETP is driven by the price of the underlying cryptocurrency, which can be highly volatile and can fall significantly in short periods. Investors may lose a substantial portion of, or their entire, invested capital.
Structural protections in Bitwise ETPs include:
The Total Expense Ratio (TER) is deducted from the cryptocurrency entitlement per ETP unit on a daily accrual basis. This means the quantity of cryptocurrency represented by each unit decreases continuously at a rate equivalent to the annual TER. No separate cash fee is levied. The TER is the sole cost imposed by Bitwise at the product level; brokerage commissions, exchange fees, and any applicable taxes are borne by the investor and vary by platform.
TERs by product (data as of 3 July 2026):
Bitcoin
BTC1 - Bitwise Core Bitcoin ETP 0.05% p.a.*
BTCE - Bitwise Physical Bitcoin ETP 2.00% p.a.
Ethereum
ZETH - Bitwise Physical Ethereum ETP 1.49% p.a.
ET32 - Bitwise Ethereum Staking ETP 0.65% p.a.
Solana
ESOL - Bitwise Physical Solana ETP 1.95% p.a.
BSOL - Bitwise Solana Staking ETP 0.85% p.a.
Diversified / Risk Management
DA20 - Bitwise MSCI Digital Assets Select 20 ETP 0.85% p.a.
BTCG - Bitwise Diaman Bitcoin & Gold ETP 1.49% p.a.
Altcoins & Staking (GXRP, ELTC, RDAN, NEAR, APTB, AVNB, TIAB, BHYP, BWCC)
0.85% - 1.95% p.a. (varies by product)
* BTC1 TER is reduced to 0.05% p.a. until 31 December 2026; from 1 January 2027 the standard TER of 0.14% p.a. applies. See bondholder notice: bitwiseinvestments.eu/resources/announcements/2026-05-18_BTC1_Notice_to_Bondholders.pdf
The TER is the only cost imposed by Bitwise at the product level. However, investors should be aware of the following additional costs, which are not set by Bitwise and vary by platform and market conditions:
Brokerage commissions: your broker or bank will typically charge a transaction fee for buying or selling ETP units on exchange. These vary significantly by platform.
Bid-ask spread: as with any exchange-listed security, there is a difference between the price at which you can buy (the ask) and the price at which you can sell (the bid) at any given moment. This spread is determined by market makers and reflects liquidity conditions. For actively traded products such as BTC1 or BTCE, spreads are typically tight. For products with lower trading volumes, the spread may be wider.
Currency conversion: if you are investing in a currency other than your account's base currency - for example, buying a USD-denominated ETP in a EUR account - your broker may apply a currency conversion cost.
Custody or platform fees: some brokers charge ongoing custody or platform fees for holding securities in an account. These are not ETP-specific and are determined by your broker.
For staking ETPs, the staking service fee is embedded within the TER mechanism - it is deducted from the staking rewards before they are credited to the ETP's cryptocurrency entitlement, and is therefore already reflected in the quoted TER.
The tax treatment of crypto ETP gains varies by jurisdiction. Because Bitwise ETPs are classified as regulated financial instruments, they generally fall within the standard capital gains framework for financial instruments.
Germany: Physically-backed ETPs with a right to physical delivery (Sachleistungsanspruch) are treated as private disposal transactions under Section 23 EStG. Gains on positions held for more than one year are typically exempt from income tax for private investors. Gains held less than one year are subject to the investor's personal income tax rate (up to 45% plus solidarity surcharge).
Italy: Gains on crypto ETPs are subject to the standard financial instrument capital gains rate of 26% (aliquota finanziaria). Direct crypto gains are currently taxed at 33% under the Italian crypto-specific framework.
France: Gains on crypto ETPs fall under the Prélèvement Forfaitaire Unique (PFU) flat tax of 30% (12.8% income tax plus 17.2% social charges), consistent with other financial instruments.
Sweden: Crypto ETPs can be held within an Investeringssparkonto (ISK), in which case they are subject to the annual schablonbeskattning with no tax on realised gains. Outside an ISK, gains are subject to 30% capital gains tax. Direct crypto cannot be held within an ISK.
This information is provided for general guidance only and does not constitute tax advice. Tax treatment depends on individual circumstances and the laws of your country of residence, which may change. Investors should seek independent tax advice before making any investment decision. Capital at risk.
For German tax residents holding physically-backed ETPs with a right to physical delivery (Sachleistungsanspruch) such as Bitwise Crypto ETPs, the one-year holding period exemption under Section 23 EStG applies. Gains on positions held for more than twelve months are generally exempt from income tax for private investors.
Direct cryptocurrency holdings carry the same one-year holding period exemption under Section 23 EStG, and the Bundesministerium der Finanzen (BMF) has confirmed the holding period for directly held crypto is not extended by staking.
The primary practical advantages of the ETP structure for German investors relate to portfolio integration, loss offsetting against other Section 23 gains, and the avoidance of private key and wallet management risk - rather than a fundamentally different tax rate.
Losses from physically-backed ETPs can generally be set against other private disposal gains under Section 23 EStG within the applicable rules.
This information is provided for general guidance only and does not constitute tax advice. Tax treatment depends on individual circumstances and the laws of your country of residence, which may change. Investors should seek independent tax advice before making any investment decision. Capital at risk.
In Italy, gains on crypto ETPs are subject to the standard financial instrument capital gains rate of 26% (aliquota finanziaria), classified as redditi diversi di natura finanziaria - the same rate that applies to equities, bonds, and ETFs.
Direct cryptocurrency gains are currently subject to a rate of 33% under the Italian crypto taxation framework. The Italian Budget Law 2025 introduced specific crypto tax provisions; the applicable rate and rules should be verified against current legislation.
Loss offsetting: Losses on crypto ETPs can generally be offset against gains from other financial instruments in the same category (redditi diversi). Losses from direct crypto holdings are typically not offsettable against non-crypto financial gains.
Reporting: ETP holdings are reportable under the Quadro RW declaration for investments held at foreign intermediaries. Italian brokers handle reporting automatically for domestic accounts.
This information is provided for general guidance only and does not constitute tax advice. Tax treatment depends on individual circumstances and the laws of your country of residence, which may change. Investors should seek independent tax advice before making any investment decision. Capital at risk.
In France, gains on crypto ETPs are subject to the Prélèvement Forfaitaire Unique (PFU) flat tax of 30%, comprising 12.8% income tax and 17.2% social charges. This is the standard rate applied to financial instrument gains, consistent with the treatment of equities and ETFs held in a compte-titres ordinaire (CTO).
Direct cryptocurrency gains are also subject to 30% PFU under Article 150 VH bis CGI. However, ETP losses can be set against all capital gains on financial instruments in the same year, while direct crypto losses under Article 150 VH bis CGI are restricted to other crypto gains within the same tax year.
Plan d'Épargne en Actions (PEA): Crypto ETPs are not eligible for the PEA wrapper.
Note: France is currently in the process of unlocking retail distribution for certain Bitwise products. The tax information above applies when products are available for distribution in France.
This information is provided for general guidance only and does not constitute tax advice. Tax treatment depends on individual circumstances and the laws of your country of residence, which may change. Investors should seek independent tax advice before making any investment decision. Capital at risk.
Sweden's Investeringssparkonto (ISK) is a tax-advantaged savings account available to Swedish tax residents for holding financial instruments including equities, funds, and exchange-traded products. Crypto ETPs listed on regulated exchanges can be held within an ISK.
Within an ISK: instead of paying 30% capital gains tax on realised gains, the investor pays an annual schablonbeskattning - a notional tax calculated on the account value, multiplied by the government borrowing rate (statslåneräntan) plus one percentage point. There is no tax on individual transactions or realised gains within the account.
Direct crypto cannot be held within an ISK. Direct crypto gains are always subject to 30% kapitalvinstskatt on each realised gain.
Crypto ETPs can also be held within a kapitalförsäkring (endowment insurance), with similar tax treatment to an ISK.
The ISK advantage is most significant for investors with large unrealised gains, frequent trading, or long time horizons - where the compounding benefit of deferred, low-rate taxation is greatest.
This information is provided for general guidance only and does not constitute tax advice. Tax treatment depends on individual circumstances and the laws of your country of residence, which may change. Investors should seek independent tax advice before making any investment decision. Capital at risk.
The tax treatment of staking rewards received through an ETP structure varies by jurisdiction, remains an evolving area of law across Europe, and in several markets has not yet been definitively addressed by the relevant tax authorities. The following reflects the general position as understood at the date of publication. Investors should seek independent tax advice before making any investment decision.
As a general principle, staking rewards that accrue within an ETP structure and increase the ETP's cryptocurrency entitlement — rather than being distributed as cash to the investor — may not constitute a taxable income event at the investor level at the point of accrual. The investor's primary tax event would then arise on disposal of the ETP units. However, this analysis has not been confirmed by tax authorities in all jurisdictions and depends on the specific structure of the product.
Germany: For directly held cryptocurrency, the BMF has confirmed that staking rewards constitute miscellaneous income (sonstige Einkünfte) under Section 22 No. 3 EStG and are taxable at the investor's personal income tax rate at the point of receipt. For ETP-embedded staking, where rewards accrue into the cryptocurrency entitlement rather than being paid out directly, the position is less settled and has not been specifically confirmed by the BMF. Investors should seek qualified German tax advice on their specific situation.
Italy: The tax treatment of staking rewards within an ETP is subject to the general classification of the ETP as a financial instrument. Agenzia delle Entrate guidance on crypto staking within ETP structures is still developing. Seek qualified Italian tax advice.
France: Staking rewards that accrue within an ETP and increase the cryptocurrency entitlement are not typically treated as current income at the investor level under the general PFU framework, though specific guidance on ETP-embedded staking remains limited. Seek qualified French tax advice.
Sweden: Within an ISK, staking rewards accruing within the ETP are part of the account value subject to schablonbeskattning. No separate income tax arises on the rewards within the ISK wrapper. Outside an ISK, seek qualified Swedish tax advice on the treatment of ETP-embedded staking rewards.
This information is provided for general guidance only and does not constitute tax advice. It reflects the general position as understood as at July 2026 and is subject to change. Tax treatment depends on individual circumstances and the laws of your country of residence. Investors should consult a qualified tax adviser in their jurisdiction before making any investment decision. Capital at risk.
Reporting obligations depend on the investor's country of residence and the jurisdiction in which the ETP is held.
For investors holding ETPs through a domestic regulated broker or bank: in most EU member states, the intermediary is responsible for withholding applicable taxes and reporting to the relevant tax authority. Individual reporting obligations are typically minimal or handled automatically.
For investors holding ETPs through a foreign broker or custodian, additional reporting obligations may apply:
Germany: Holdings at foreign intermediaries may be subject to annual reporting under the income tax declaration.
Italy: Holdings at foreign intermediaries are subject to the Quadro RW declaration in the annual tax return, along with IVAFE (Imposta sul valore delle attività finanziarie estere) in certain cases.
France: Holdings at foreign intermediaries must be declared annually under the obligation to report foreign accounts and financial instruments.
Sweden: The Swedish Tax Agency (Skatteverket) requires disclosure of foreign financial assets and income in the annual income tax return.
ETP holdings do not typically require the same reporting as direct crypto holdings under crypto-specific disclosure regimes such as DAC8, as they are financial instruments rather than crypto-assets.
This information is provided for general guidance only and does not constitute tax advice. Tax treatment depends on individual circumstances and the laws of your country of residence, which may change. Investors should seek independent tax advice before making any investment decision. Capital at risk.
Staking is the mechanism by which holders of cryptocurrencies operating on Proof of Stake (PoS) consensus protocols contribute their tokens as collateral to support transaction validation. Validators that operate correctly and maintain uptime receive staking rewards denominated in the native token; those that fail to do so may be subject to penalties ('slashing'). Staking does not involve selling or lending the underlying tokens - the assets remain within the custody chain while contributing to network security.
For investors accessing staking through an ETP structure (see list of Bitwise Staking ETPs for reference), Bitwise manages all technical and operational aspects of the staking process. Rewards are accrued daily into the ETP's cryptocurrency entitlement, net of the applicable staking service fee.
Staking rewards are variable, not guaranteed, and may be reduced or eliminated by protocol changes. Slashing risk, lock-up periods, and third-party service provider risk apply. Please refer to the relevant product prospectus for a full description of staking-related risks.
Bitwise employs non-custodial staking across its staking ETPs: the underlying crypto assets are staked directly from the regulated cold-storage custody account, without transferring ownership or control to a third-party staking provider. This preserves the custodial integrity of the assets and is consistent with the no-lending policy.
Staking rewards are collected by the protocol and credited to the ETP's cryptocurrency entitlement on a daily basis, net of a staking service fee retained by the issuer to cover operational costs. As a result, the quantity of cryptocurrency per ETP unit increases over time to reflect accumulated net staking returns.
To manage the underlying protocol unbonding periods - which can range from days to several weeks depending on the network - Bitwise maintains a proportion of the underlying assets in an unstaked state at all times, ensuring the ETP retains daily on-exchange liquidity without lock-up periods for investors.
Staking rewards are variable, not guaranteed, and may be reduced or eliminated by protocol changes. Slashing risk, lock-up periods, and third-party service provider risk apply. Please refer to the relevant product prospectus for a full description of staking-related risks.
For more information, the staking guide information website is available at bitwiseinvestments.eu/blog/guides/staking-guide/
No. Staking rewards are variable and are not guaranteed. Reward rates depend on, among other factors, the proportion of total token supply actively staked on the network, protocol parameters set by the network's governance, and validator performance. Rates fluctuate continuously and may be materially altered by protocol upgrades or governance decisions outside Bitwise's control.
Staking rewards should not be treated as equivalent to a fixed income return. They represent an additional potential source of return that carries uncertainty and is subject to the specific risks set out in the product prospectus.
Staking rewards are variable, not guaranteed, and may be reduced or eliminated by protocol changes. Slashing risk, lock-up periods, and third-party service provider risk apply. Please refer to the relevant product prospectus for a full description of staking-related risks.
Slashing is a protocol-enforced penalty applied to validators that behave incorrectly - for example by double-signing transactions, going offline for extended periods, or otherwise violating protocol rules. The penalty typically involves the forfeiture of a defined percentage of the staked assets.
Slashing risk is a material and inherent feature of Proof of Stake staking and is disclosed as such in the product prospectus. Bitwise mitigates this risk by engaging exclusively with professional, regulated, and operationally experienced staking service providers, and by monitoring validator performance on an ongoing basis. However, slashing cannot be fully excluded and investors should be aware it represents a potential source of loss on the staked portion of the underlying assets.
Staking rewards are variable, not guaranteed, and may be reduced or eliminated by protocol changes. Slashing risk, lock-up periods, and third-party service provider risk apply. Please refer to the relevant product prospectus for a full description of staking-related risks.
No. Bitcoin operates on a Proof of Work (PoW) consensus mechanism, wherein transaction validation is performed through computational mining rather than token collateralisation. Staking is applicable only to networks that have implemented Proof of Stake - including Ethereum, Solana, Avalanche, and NEAR, among others. Bitwise does not offer a Bitcoin staking product.
Bitwise offers a range of staking ETPs in Europe, where staking rewards are accrued daily into the ETP's cryptocurrency entitlement, net of the applicable staking service fee. Current staking products include:
Investors should carefully consider the following risk factors prior to investment. This is not an exhaustive list; full risk disclosures are contained in the relevant Base Prospectus and Final Terms.
Price volatility: Cryptocurrency prices can fluctuate dramatically and rapidly. The market value of the ETP may decline significantly over short periods.
Capital risk: Capital invested is fully at risk. Investors may not recover the full amount invested and in adverse scenarios may lose their entire investment.
Unregulated underlying assets: The underlying crypto assets are not regulated financial instruments. They are not subject to the same investor protection frameworks as equities, bonds, or regulated collective investment schemes.
Liquidity risk: Market depth and trading volumes may vary, particularly in stressed conditions, which may affect the ability to execute at desired prices.
Regulatory risk: The regulatory treatment of crypto assets continues to evolve. Changes to applicable regulation may affect product availability, structure, or tax treatment.
Currency risk: Where the ETP's trading denomination differs from the investor's base currency, exchange rate movements introduce additional return variability.
Custody risk: Despite institutional-grade custody arrangements, digital assets may be exposed to operational or cyber risk.
Staking-specific risks (staking products only): Variable and non-guaranteed reward rates; slashing risk; protocol changes; unbonding period risk at the underlying asset level.
Past performance is not a reliable indicator of future results. For a complete overview on risks, visit the risk information page on bitwiseinvestments.eu.
Investors should read the Base Prospectus and the relevant Final Terms, in particular the 'Risk Factors' section, before investing. Independent advice is recommended where appropriate.
Where products are accessible to retail investors (jurisdiction and platform eligibility may vary), suitability varies significantly by individual circumstances. Crypto ETPs are high-risk instruments. They are not appropriate for investors who cannot tolerate significant capital loss, who require capital stability or income, or who have a short investment horizon.
Certain materials and services - including OTC block trading, primary market access, and institutional due diligence collateral - are available exclusively to professional investors as defined under MiFID II.
Retail investors should read the relevant Key Information Document (KID) prior to any investment decision and, where appropriate, obtain independent financial advice. Nothing in this FAQ constitutes a personal recommendation or investment advice.
Suitability assessment is the responsibility of the investor and, where applicable, their financial adviser or distributor.
Liquidity risk refers to the possibility that an investor may not be able to buy or sell an ETP unit at their desired price, or at all, particularly in stressed market conditions.
On-exchange liquidity: Bitwise ETPs benefit from continuous liquidity provision by a network of Authorised Participants and market makers, including Jane Street, Virtu Financial, DRW Cumberland, Flow Traders, and SIG Susquehanna. Under normal market conditions, bid-ask spreads are tight and significant volumes can be transacted efficiently.
In stressed conditions - for example, periods of extreme cryptocurrency price volatility - market makers may widen spreads or temporarily reduce quoted sizes. This is consistent with the behaviour of market makers across all asset classes during stress events and is not specific to crypto ETPs.
Primary market liquidity: Authorised Participants can create and redeem ETP units directly with the issuer in exchange for the underlying cryptocurrency. This primary market mechanism acts as an anchor for on-exchange pricing and provides an additional channel for large transactions that might otherwise move the market price.
Product-specific considerations: liquidity levels vary by product. Products tracking more liquid underlying assets - such as Bitcoin or Ethereum - generally benefit from tighter spreads and deeper markets than products tracking smaller-cap digital assets. Investors in less liquid products should be aware that execution at a specific price cannot be guaranteed, particularly for large orders.
Market-making services and spread levels may vary by product. Please refer to the relevant Final Terms for specific liquidity arrangements.
The Independent Administrator publishes a weekly Proof of Holdings report, available on the Bitwise website, confirming that total cryptocurrency held in custody equals or exceeds the aggregate cryptocurrency entitlement of all ETP units in issue at that date. The report is produced independently of the issuer.
In addition, an independent Auditor performs regular audits of Bitwise Europe GmbH's financial statements. Both the Proof of Holdings reports and the audited financial statements are accessible via the Resources section at bitwiseinvestments.eu.
The Base Prospectus, Final Terms for each product, and Key Information Documents (KIDs) are available under the Resources section at bitwiseinvestments.eu. Access requires self-certification of jurisdiction and investor type in accordance with applicable distribution requirements.
Additional materials - including SFDR disclosures, due diligence collateral, and product analysis - are available upon request at clients@bitwiseinvestments.com.
Investors are strongly encouraged to read the Base Prospectus and the relevant Final Terms in full, and in particular the 'Risk Factors' section, prior to any investment.
Bitwise is a specialist crypto asset manager founded in 2017, with over $11 billion in client assets under management (Data as of Q2 2026). The firm serves financial advisors, family offices, and institutional investors globally across ETPs, ETFs, separately managed accounts, private funds, and hedge fund strategies.
In Europe, Bitwise issues crypto ETPs through Bitwise Europe GmbH, domiciled in Frankfurt, Germany. The management company, Bitwise Europe Management Ltd, is based in London, UK. Products are issued under a base prospectus approved by BaFin with a separate FCA-approved prospectus used for any public offer in the United Kingdom, and are listed on major European stock exchanges.
Bitwise is an asset manager - not a crypto exchange or brokerage. Its investment activities are focused exclusively on digital assets.
Bitwise's track record in European crypto ETP issuance includes:
Bitwise is a specialist crypto asset manager that has been building institutional-grade crypto investment products since 2017. A number of structural and operational features distinguish Bitwise's European ETP range:
Pioneer in European crypto ETPs: Bitwise issued the first centrally-cleared Bitcoin ETP on Deutsche Börse XETRA in June 2020, under the first BaFin-approved crypto ETP base prospectus. It also launched the first crypto index ETP in Europe benchmarked to an MSCI index (DA20) and was first to market with index-based staking ETPs.
Independent Administrator with veto rights: Bitwise introduced the concept of an independent transaction administrator for crypto ETPs in Europe - a governance layer that requires countersignature on all asset movements and holds legally enforceable veto rights. This is an investor-protection feature that is not universally present across the market.
No lending: the underlying assets are prohibited from being lent or rehypothecated by the prospectus. This is an explicit structural commitment, not a discretionary policy.
ISO/IEC 27001:2022 certification: Bitwise's UK management company holds independent certification for information security management, subject to regular audit.
Regulated institutional custodians: assets are held by BitGo, Zodia Custody (Europe) S.A., and Coinbase Luxembourg S.A. - regulated specialist custodians with institutional-grade cold-storage and multi-signature security.
Dedicated crypto expertise: Bitwise employs over 200 professionals globally (data as of Q2 2026), including a dedicated digital asset research team, and publishes regular market insights and analysis for investors and intermediaries.
Investors should conduct their own due diligence and consider the relevant Base Prospectus and Key Information Document before making any investment decision. Capital at risk.
General enquiries: europe@bitwiseinvestments.com
Private and professional clients: clients@bitwiseinvestments.com
Website: bitwiseinvestments.eu
Regional coverage: professional investors can contact their local Bitwise representative via the regional contacts information page at bitwiseinvestments.eu/regional-teams/
This document is a marketing communication issued by Bitwise Europe GmbH ("BEU" or "the Issuer"). It is provided for educational and information purposes only and does not constitute investment, tax or legal advice, a recommendation, or a solicitation or offer to buy or invest in any product.
This page is not intended for use by, or directed at, any person located in the United Kingdom who does not have professional experience in matters relating to investment in cryptocurrencies and crypto-backed ETPs.
Bitwise Europe GmbH, incorporated under the laws of Germany, is the issuer of the Exchange Traded Products ("ETPs") referred to in this document under a base prospectus and final terms (which may be supplemented from time to time) approved by BaFin.
Capital at risk. Cryptoassets are high-risk and volatile. The value of investments in cryptoassets and crypto-linked ETPs may fall as well as rise, and investors may lose some or all of their invested capital. No investor protection or compensation scheme applies. Past performance is not a reliable indicator of future results.
Before investing you should read the relevant base prospectus and final terms – in particular the section entitled "Risk Factors" – together with the applicable key information document (KID). These documents are available under the "Resources" section at www.bitwiseinvestments.com; to access them you will need to self-certify as to your jurisdiction and investor type, and in doing so you may be subject to other disclaimers and important information. The products are not available in all jurisdictions: you should confirm with an independent financial adviser, your broker or bank that they are available in your jurisdiction and suitable for your investment profile, and should take independent investment, tax and legal advice based on your own circumstances before investing.
Read the full disclaimer here: https://bitwiseinvestments.eu/disclaimer
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