Future proof your ISK with crypto

The Investeringssparkonto (ISK) savings account is a popular way to invest because it simplifies the way holdings are taxed. 

While Swedes have traditionally used ISKs to invest in traditional asset classes, demand is growing for access to cryptocurrencies because they offer valuable portfolio diversification. But accessing crypto can be complex and risky, especially when purchasing directly through an exchange. One alternative is to invest in crypto exchange-traded products (ETPs), which provide exposure without holding the underlying asset. 

This article explains how ISK accounts work and how investors can add crypto to their portfolios using CoinShares XBT Provider ETPs.

What is an ISK?  

Launched in 2012, the ISK is an account which allows investors to hold a wide range of asset classes including shares, bonds, funds and exchange-traded funds (ETFs). The main benefit is it simplifies the taxation of returns by applying a standard rate of 30% on holdings instead of taxing gains, losses and income.

Other benefits of investing through an ISK include:

• Dividends are tax-free if withdrawn before the end of the quarter

• There are no setup costs

• Tax returns are easier because the Swedish tax authority automatically calculates the liability 

• Some ISK providers are covered by the Swedish Deposit Protection Scheme 

Here's an example of how the tax liability is calculated.

1) Capital base

The balances- the value of the holdings, unused cash and transfers into the account at the start of each quarter (January, April, July and October)- are added together and then divided by four to calculate the capital base.

Q1- 50,000 Kr

Q2- 53,000 Kr

Q3- 51,000 Kr

Q4- 54,000 Kr

Total= 208,000 Kr

Capital base (208,000 Kr divided by four) = 52,000 Kr

2) Standard income 

The standard income is a percentage of the capital base, calculated using the government’s borrowing rate as of 29^th November in the previous year and adding 1% (the minimum rate is 1.25%).  

Standard income (2.94%* of 52,000 Kr) = 1,539 Kr

*Government borrowing rate as of 29^th November 2024 = 1.96% 

3) Liability 

The standard tax rate of 30% is applied to the standard income 

Liability (30% of 1,539 Kr) = 462 Kr

Rise of crypto-assets as an investment 

Bitcoin was launched as a peer-to-peer electronic cash system in 2009, following the publication of a whitepaper by pseudonymous founder Satoshi Nakamoto. The market capitalisation was initially slow to grow, but in the 10 years from May 2015, it has risen from $3.2 billion to $1.92 trillion (as of 7 May 2025), representing a compound annual growth rate (CAGR) of approximately 73%. Meanwhile, the capitalisation of the entire crypto market has grown to $3 trillion (as of 7 May 2025). 

Despite Satoshi designing Bitcoin as a medium of exchange, it has also gained significant traction as a store of value. One of the most pivotal moments in its financialization was the approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission in January 2024. Led by the world’s largest asset manager, BlackRock, several ETF providers—such as Fidelity and Franklin Templeton—launched their own Bitcoin ETFs, establishing Bitcoin’s legitimacy as an asset class among both retail and institutional investors.

The launch of these products has proven successful, with over $40 billion in inflows since inception (as of 7 May 2025). Meanwhile, notable publicly listed companies have begun accumulating Bitcoin—either as a core business strategy (most notably U.S. company Strategy, formerly MicroStrategy, and Japan’s Metaplanet), or as part of a treasury diversification plan (U.S. firms Tesla and Block)—significantly increasing buying pressure.

Incidentally, analysts at asset manager Bernstein have predicted that Bitcoin could rise to $200,000 by the end of 2025—a figure they describe as conservative. This would imply a total market capitalization of approximately $3.8 trillion.

In Europe, digital asset investment products have been part of the financial landscape since as early as 2015—a precocity attributed to CoinShares XBT Provider (formerly XBT Provider), which launched the world’s first regulated, Bitcoin-backed, publicly traded investment product in Sweden. Known for their early adoption of emerging technologies—such as mobile phones in the late 1980s and digital payments in the 1990s—Swedes have similarly embraced crypto. According to research by Chainalysis, Sweden ranks 70th out of 155 countries in crypto adoption, ahead of Israel, Singapore, and its Scandinavian neighbors.

Does crypto have a place in modern portfolios? 

Crypto offers valuable portfolio diversification, as demonstrated by CoinShares research, which explored how a modest allocation—between 4% and 7.5%—of Bitcoin can significantly enhance portfolio performance.

As the table below shows, the portfolio including Bitcoin outperforms the others across key metrics, most notably in terms of Sharpe ratios. It delivers stronger annualised returns, with only a slight increase in volatility. Additionally, it exhibits lower correlation (i.e., the degree to which two assets move in the same direction) with the standard allocation compared to the portfolio holding gold, which is nearly perfectly correlated.  

However, this isn’t investment advice. Investors should build a portfolio according to the risk they feel comfortable taking. A greater allocation to bitcoin, or choosing not to rebalance, may increase volatility.  

Learn more about diversifying a portfolio with crypto.

Adding crypto to ISKs with XBT Provider ETPs 

CoinShares XBT Provider ETPs allow holders to gain exposure to bitcoin and ether in their ISK without holding the digital assets directly. 

As mentioned earlier, CoinShares XBT Provider is a pioneer in the crypto ETP sector. Based in Sweden to take advantage of the favourable rules introduced by the country’s financial authorities, it launched the Bitcoin Tracker One ETP in 2015, the first open-ended security tracking bitcoin available on a mainstream exchange.Fast forward to today, CoinShares XBT Provider offers two suites of ETPs:

The first suite, consisting of four different ETPs, tracks the prices of Bitcoin and Ethereum, with options available in both SEK and EUR. 

The second suite, launched in May 2025, significantly expands the offerings available to Nordic investors with seven physically backed crypto ETPs, all denominated in SEK. This suite provides exposure to emerging yet well-recognized assets, including Cardano, Chainlink, Litecoin, Polkadot, Solana, Uniswap, and XRP.

CoinShares XBT Provider ETPs are listed on the Nasdaq Stockholm exchange, so they can be traded like shares and held in an ISK account. Investors can access them through most platforms including Nordnet and Avanza, Sweden’s largest brokers. 

Key risks 

As with any asset class, buying and holding crypto ETPs involves risks which investors should take into consideration before adding these products to their portfolios.     

• Investors’ capital is at risk, and holders may lose part or all of their money due to price fluctuations of the underlying asset. For instance, bitcoin has experienced several bear markets, most recently in 2022 when it dropped from $46,000 to less than $16,000

• Crypto ETPs are generally structured as debt securities. This exposes the holder to credit risk (the issuer could default on its obligations) 

• The bid/ask prices of ETPs trading on an exchange likely differ from the price of the underlying crypto. The difference between the bid (the broker’s purchase price) and the ask (its sell price) is referred to as the ‘spread’. 

Finally, past performance isn’t an indicator of future returns. Investors should always seek professional advice to ensure a crypto allocation fits with their overall goals and objectives.

Conclusion 

An ISK is a tax-efficient investment account which charges a standard rate of 30% on holdings rather than taxing gains, losses and income. These accounts simplify investing because the Swedish tax authority automatically calculates the liability. They’re free to set up, and some are covered by Sweden’s deposit guarantee scheme. 

To take advantage of the portfolio diversification offered by crypto, investors can hold CoinShares XBT Provider ETPs in their ISK. CoinShares XBT Provider is a Swedish-domiciled issuer of ETPs offering exposure to both bitcoin and ether. These products trade in euros and SEK on Sweden’s largest mainstream brokers, Nordnet and Avanza.

Before investing, it’s important to thoroughly research the risks involved, for example the potential losses caused by price volatility and the risk that the issuer may default on its obligations. 

Learn more about CoinShares XBT Provider ETPs.