The CoinShares Physical Bitcoin ETC (Exchange-Traded Commodity) offers a streamlined avenue for investors to gain exposure to Bitcoin's price performance. It eliminates the technical complexities typically associated with direct cryptocurrency ownership, such as setting up and managing private wallets. This product is physically backed by Bitcoin, meaning each unit represents a direct claim on the underlying asset. It is centrally cleared, which significantly reduces counterparty and settlement risks for investors.
This guide provides a detailed analysis of this popular ETC, covering its performance, key data, and how it operates.
Performance Overview (CHF)
The following tables detail the historical performance of the CoinShares Physical Bitcoin ETC, including distributions. All figures are in Swiss Francs (CHF) and are updated as of July 3, 2025.
Periodic Performance
| Time Period | Performance |
|---|---|
| 1 Week | +2.00% |
| 1 Month | +0.44% |
| 3 Months | +24.94% |
| 6 Months | -1.19% |
| 1 Year | +60.60% |
| 3 Years | +360.32% (66.35% p.a.) |
| 5 Years | — |
| 10 Years | — |
| Since Launch | +152.68% (23.15% p.a.) |
Annual Performance
| Year | Performance |
|---|---|
| YTD 2025 | +1.23% |
| 2024 | +137.36% |
| 2023 | +147.51% |
| 2022 | -63.80% |
| 2021 | +36.39% |
| 2020 | — |
Key Fund Data
Understanding a fund's structure is crucial for investment decisions. Here are the essential details for the CoinShares Physical Bitcoin ETC.
| Feature | Detail |
|---|---|
| Total Expense Ratio (TER) | 0.98% |
| Replication Method | Physical |
| Replication Type | Full |
| Distribution Policy | Accumulating |
| Fund Size | CHF 1.45 Billion |
| Launch Date | January 19, 2021 |
| Fund Currency | USD |
| Currency Hedging | No |
| Domicile | Jersey |
| SFDR Classification | No Information |
Risk and Analysis Metrics
Evaluating risk is a key part of any investment process. The following metrics help assess the volatility and potential drawdowns associated with this ETC.
| Metric | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| Volatility | 54.82% | 55.76% | — |
| Max Drawdown | -20.97% | -31.78% | — |
| Sharpe Ratio | 1.26 | 1.22 | — |
| Number of Holdings | 10.22 |
Underlying Index and Holdings
The ETC tracks the Compass Crypto Reference Bitcoin index. This index is designed to reflect the performance of Bitcoin.
- Index Name: Compass Crypto Reference Bitcoin
- Constituents: The fund achieves its objective by holding physical Bitcoin.
- Equity Positions: None.
- Bond Positions: None.
- Cash & Other Positions: 0% (The fund is fully allocated to physical Bitcoin).
For investors looking to compare their options, it is wise to 👉 explore alternative index funds that track similar digital asset benchmarks.
Advantages of Investing Through an ETC
Investing in Bitcoin via an ETC like the CoinShares Physical product offers several distinct benefits, especially for traditional investors.
- Accessibility and Convenience: It can be bought and sold through a standard brokerage or investment account, just like a stock.
- Enhanced Security: The responsibility of securing the Bitcoin is handled by the fund's custodian, mitigating risks like losing private keys or falling victim to hacking.
- Regulated Environment: As a listed security, it operates within a regulatory framework, providing a layer of investor protection.
- Tax Efficiency: In many jurisdictions, the treatment of gains from securities can be different and sometimes simpler than from direct cryptocurrency ownership.
Frequently Asked Questions
What is the difference between an ETF and an ETC?
An ETF (Exchange-Traded Fund) typically tracks a basket of stocks or bonds. An ETC (Exchange-Traded Commodity) is designed to track the performance of a single commodity, like gold or Bitcoin. The CoinShares product is an ETC because its underlying asset is a commodity (BTC).
How does the "physically backed" structure work?
For every unit of the ETC issued, the issuer holds a corresponding amount of physical Bitcoin in secure, cold storage. This direct backing ensures that the ETC's value moves in lockstep with the spot price of Bitcoin.
What is the Total Expense Ratio (TER) and how is it applied?
The TER of 0.98% is an annual fee that covers the fund's management, custody, and operational costs. It is not charged directly to the investor but is automatically deducted from the fund's net asset value (NAV), which is reflected in its share price.
Is this investment suitable for a long-term retirement portfolio?
Due to its high volatility, Bitcoin is considered a high-risk asset. While it has the potential for significant growth, it also carries a substantial risk of loss. It may be suitable for a small, speculative portion of a diversified long-term portfolio, but investors should assess their own risk tolerance first.
Can I take delivery of the physical Bitcoin?
No. Unlike some physically-backed gold ETCs that may allow for physical delivery, this ETC does not offer a redemption-for-Bitcoin mechanism. Investors gain price exposure but cannot exchange their ETC shares for the underlying cryptocurrency.
Why is the fund domiciled in Jersey?
Jersey is an international finance center with a well-established regulatory framework for investment products. Domiciling the fund there allows for a structure that is efficient and accessible to a global investor base while complying with relevant regulations.