Cryptocurrency investment has evolved rapidly, and with it, the demand for secure, regulated, and user-friendly access to digital assets. In Germany and across Europe, investors are increasingly turning to Exchange Traded Products (ETPs) as a bridge between traditional finance and the crypto economy. Among the leaders in this space is CoinShares, offering physically backed crypto ETPs that provide transparent, simple, and compliant exposure to Bitcoin, Ethereum, and other major digital assets.
This article explores how CoinShares Physical ETPs work, their benefits, available products, and why they’re gaining traction—especially among German investors seeking regulated crypto access.
What Are CoinShares Physical Crypto ETPs?
CoinShares is a European market leader in digital asset investment solutions, with offices in Switzerland, Jersey, the UK, and Sweden. The company specializes in physically collateralized Exchange Traded Products (ETPs)—financial instruments listed on regulated exchanges that track the price of underlying cryptocurrencies like Bitcoin and Ethereum.
Unlike synthetic or derivative-based products, CoinShares’ ETPs are 100% backed by real crypto assets, stored securely in cold storage. This structure ensures investors gain direct economic exposure without managing wallets or private keys.
👉 Discover how physically backed crypto ETPs simplify long-term investing.
Why Physically Backed Crypto ETPs Matter
As institutional and retail interest in crypto grows, so does the need for regulated, transparent, and secure investment vehicles. Many investors—especially in Germany—are hesitant to manage digital assets directly due to technical complexity, security risks, or tax reporting concerns.
Physically backed ETPs solve these challenges by:
- Eliminating the need for self-custody
- Offering seamless integration into traditional brokerage accounts
- Providing full transparency on holdings and valuation
- Ensuring compliance with EU financial regulations
These features make CoinShares ETPs ideal for both novice and experienced investors who want simple, compliant exposure to crypto markets.
Understanding ETPs and Physical Backing
An Exchange Traded Product (ETP) is a tradable security that tracks the price of an underlying asset—in this case, cryptocurrencies. ETPs trade on major stock exchanges like Xetra in Germany, making them accessible through standard brokerage platforms.
What Does "Physically Backed" Mean?
When an ETP is physically backed, it means:
- Each unit represents ownership of actual cryptocurrency
- The underlying coins are held in secure institutional cold storage
- Investors have a legal claim to the underlying assets
- Holdings are independently audited and published daily
This model contrasts sharply with synthetic or futures-based products, which rely on derivatives and counterparty agreements. Physical backing ensures direct price correlation and minimizes counterparty risk.
Key Benefits of CoinShares Physical ETPs
🔒 Security & Institutional Custody
Security is paramount when investing in digital assets. CoinShares partners with Komainu, a regulated custody solution jointly developed by Nomura, Ledger, and CoinShares itself. All crypto assets backing the ETPs are stored in offline cold wallets, protected against hacking and unauthorized access.
This institutional-grade custody gives investors confidence that their assets are safeguarded at all times.
📊 Daily Transparency
Transparency builds trust. CoinShares publishes the following information every business day:
- Exact amount of cryptocurrencies held
- Net Asset Value (NAV) per ETP unit
- Total number of units outstanding
- Staking income distributed (for staked products)
This data is publicly available on the CoinShares website, allowing investors to verify holdings and track performance in real time.
🏛 Regulation & Compliance
CoinShares Physical ETPs are:
- Issued under EU financial regulations
- Supervised by regulatory authorities
- Listed on major European exchanges like Xetra
- Domiciled in Jersey, known for strong financial oversight
This regulatory framework ensures investor protection and makes these ETPs suitable for inclusion in taxable and retirement accounts.
💡 Direct Coin Entitlement
Each ETP unit grants the holder a "Coin Entitlement"—a direct economic claim to a specific amount of cryptocurrency. This entitlement is updated daily based on inflows, outflows, and staking rewards.
For example:
- Holding 1 unit of CoinShares Physical Bitcoin (BITC) entitles you to a defined fraction of a Bitcoin.
- Over time, if staking rewards are distributed (e.g., in staked Ethereum or Polkadot ETPs), your entitlement increases slightly.
This creates a tangible link between investor and asset—without requiring technical know-how.
Available CoinShares Physical ETPs
CoinShares offers a diverse range of single-asset and thematic ETPs, catering to different investment strategies:
Single Asset ETPs
- CoinShares Physical Bitcoin (BITC)
- CoinShares Physical Staked Ethereum (CETH)
- CoinShares Physical Litecoin (CLTC)
- CoinShares Physical XRP (XRRL)
- CoinShares Physical Staked Tezos (XTZS)
- CoinShares Physical Staked Polkadot (CDOT)
- CoinShares Physical Staked Cardano (CSDA)
- CoinShares Physical Staked Solana (SLNC)
- CoinShares Physical Staked Chainlink (CCHA)
- CoinShares Physical Uniswap (CIWP)
- CoinShares Physical Staked Cosmos (COMS)
- CoinShares Physical Staked Polygon (CPYG)
- CoinShares Physical Staked Algorand (RAND)
Thematic & Index-Based ETPs
- CoinShares Physical Top 10 Crypto Market ETP (CTEN) – Exposure to the 10 largest cryptocurrencies by market cap
- CoinShares Physical Smart Contract Platform ETP (CSSC) – Focuses on blockchains enabling decentralized applications
These options allow investors to diversify beyond Bitcoin while maintaining regulatory compliance and physical backing.
👉 Explore how staking-powered ETPs can enhance long-term returns.
Why German Investors Favor CoinShares ETPs
Germany has emerged as one of Europe’s most crypto-friendly markets, with high retail participation and strict regulatory standards. CoinShares’ ETPs align perfectly with German investor preferences:
- ✅ Available via popular brokers: Trade Republic, Scalable Capital, ING, Comdirect
- ✅ Treated as standard securities for tax reporting purposes
- ✅ Transparent fee structure: low annual management fees (typically 0.95%–1.25%)
- ✅ Eligible for inclusion in Wertpapier-Sparpläne (stock savings plans)
- ✅ No need to report wallet addresses or transaction histories
This ease of use makes CoinShares ETPs a preferred choice for integrating crypto into traditional portfolios.
Frequently Asked Questions (FAQ)
Q: How do I buy CoinShares Physical ETPs?
A: You can purchase them through any German brokerage that supports Xetra-listed securities—such as Trade Republic or Scalable Capital—just like buying stocks or ETFs.
Q: Are there hidden fees?
A: No. The only cost is a transparent annual management fee, clearly disclosed in the prospectus. There are no entry/exit loads or hidden charges.
Q: Can I redeem my ETP units for actual cryptocurrency?
A: While redemption is typically limited to authorized participants (like banks), retail investors benefit economically from price appreciation and staking income without needing physical delivery.
Q: How are staking rewards distributed?
A: For staked ETPs (e.g., CETH, CDOT), staking income is collected regularly and reflected in the NAV. Investors receive this value automatically through price growth or periodic distributions.
Q: Is my investment protected under deposit guarantee schemes?
A: No—crypto-backed ETPs are not covered by standard deposit insurance. However, assets are held in secure custody with independent auditors and daily transparency reports.
Q: How does taxation work in Germany?
A: Since these are classified as securities, capital gains are subject to standard German income tax rules after the one-year holding period.
👉 Learn how to start building a tax-efficient crypto portfolio today.
Final Thoughts: A Trusted Gateway to Crypto Investing
CoinShares Physical ETPs represent a major step forward in bringing digital assets into the mainstream investment world. By combining physical backing, regulatory compliance, and institutional security, they offer a compelling alternative to self-custody or unregulated crypto platforms.
For German investors—and European savers more broadly—these products provide a familiar, secure way to participate in the long-term growth of Bitcoin, Ethereum, and other leading cryptocurrencies.
Whether you're new to crypto or looking to streamline your portfolio, CoinShares’ physically backed ETPs deliver simplicity without compromise.
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