CoinShares Physical Bitcoin

A physically-backed Exchange Traded Product (ETP) providing secure, transparent exposure to the world's first and largest public blockchain.

Product Info

Bitcoin's investment case

Strategic

Bitcoin portfolio allocation sharpe impact

  • Small weightings of bitcoin within a multi-asset portfolio have historically had an outsized positive impact on both risk-adjusted returns and diversification relative to other alternative assets.
  • Bitcoin’s historical lack of correlation to other assets make it a useful alternative asset that can help reduce exposure to economic cycles
  • Quarterly adjustments (rebalancing) of Bitcoin, back to the original weight in the portfolio can help limit volatility and enhance returns

Fundamental

The term ‘digital gold’ has often been attached to Bitcoin, and not without good reason. Bitcoins are uniquely scarce — total bitcoin supply will never exceed 21 million - which means inflation is completely predictable and unchangeable.

Bitcoins are not printed by central banks, instead, they are discovered through a process of cryptographic computation (mining), and at significant cost.

  • Bitcoin is fast establishing itself as a liquid store of value, with spot trade volumes up over 100x in the last 5 years (Source: Kaiko, CoinShares Research, data available as of November 2020)
  • Bitcoin has a similar dilution rate to other hard assets like gold
  • Over the course of 2019, the Bitcoin blockchain cleared US$1.9 trillion worth of transfer value (Source: CoinMetrics)

Tactical

There are multiple strategies available to traders looking for tactical opportunities within bitcoin markets. Among professional funds operating in bitcoin markets, we observe strategies such as: long/short, exchange arbitrage, carry/basis trades and hedging.

  • Many of the indicators used for tactical purposes in bitcoin markets are the same as in traditional markets, such as price, spot volumes, derivatives volumes, futures basis and implied volatility
  • The transparency of the Bitcoin blockchain also enables a range of unique indicators shedding light on the settlement activity of the system itself or the behavior of bitcoin holders, among these, we count the Network-to-Transaction Value Ratio (NTV), Spent Output Profit Ratio (SOPR) and address age analysis (UTXO Bands)

Exchange
Traded Products (ETPs)

Trade like shares, slot into existing brokerage accounts and portfolio management systems.

CoinShares Physical ETP Structure

  1. Investor places buy order for BITC Securities with a Broker
  2. Broker either sources existing inventory or asks Liquidity Provider to apply for new BITC Securities
  3. Liquidity Provider purchases bitcoins in the crypto markets for delivery to the Issuer
  4. Liquidity Provider then sends bitcoin to the Issuer’s custodian
  5. Only after bitcoin has been received, Issuer delivers BITC Securities to Liquidity Provider
  6. Liquidity Provider settles securities with Broker and Investor receives those BITC Securities in exchange for the cash
  1. Investor places sell order with a Broker
  2. Broker sells BITC Securities to Liquidity Provider for cash
  3. Liquidity Provider delivers BITC Securities to Issuer
  4. Only after the BITC Securities have been delivered, Issuer delivers relevant amount of bitcoins to Liquidity Provider
  5. Liquidity Provider either holds or sells bitcoins for cash in the crypto markets

CoinShares Physical Bitcoin | BITC

Underlying AssetBitcoin
Base CurrencyUSD
Management fee0.98%
Bloomberg CodeBITC SW
Securities LendingNo
ISINGB00BLD4ZL17
Leverage FactorN/A
Coin Entitlement (CE)0.001 BTC at launch (Download CE Calculator)
Price per securityCoin Entitlement (CE) x Bitcoin price
DomicileJersey
Replication methodPhysical
Legal structureDebt Security (ETP)
UCITS EligibleYes *UCITS eligibility varies by jurisdiction. Please contact CoinShares if you would like to discuss.
UK Reporting Fund StatusPending
Underlying Asset VerificationArmanino LLP (TrustExplorer)
CustodianKomainu (Jersey) Limited
AdministratorJTC Fund Solutions (Jersey) Limited
TrusteeThe Law Debenture Trust Corporation p.l.c.
AuditorBaker Tilly Channel Islands Limited
IssuerCoinShares Digital Securities Limited
RegistrarComputershare Investor Services (Jersey) Ltd
CountryExchangeTrading CurrencyBloomberg CodeISINSEDOLWKNListing Date
SwitzerlandSIXUSDBITC SWGB00BLD4ZL17BLD4ZL1A3GPMN19/01/2021
SwitzerlandSIXEURBITCEUR SWGB00BLD4ZL17BMDGG44A3GPMN19/01/2021
SwitzerlandSIXGBPBITCGBP SWGB00BLD4ZL17BMDGG22A3GPMN19/01/2021
SwitzerlandSIXCHFBITCCHF SWGB00BLD4ZL17BMDGG11A3GPMN19/01/2021

How To Invest

Platforms

CoinShares Physical Bitcoin (BITC) can be bought and sold in the same way as shares or funds. You can invest in BITC via your existing investment platform or broker:

  • Search for BITC, CoinShares Physical Bitcoin, or GB00BLD4ZL17 on your investment platform
  • Input the number or value of securities you wish to buy or sell
  • Place the order

Institutions

We’ve partnered with liquidity providers Flow Traders and Jane Street.


Our Capital Markets desk has decades of experience in traditional securities trading, and has also crucially been trading in spot and derivative crypto markets since 2014.


Institutions can contact us to discuss efficient execution, or for unique & direct insight into the digital asset ecosystem.


+31 207 996 777
[email protected]

+44 (0) 203 787 3333
[email protected]

FAQs

  • An Exchange Traded Product (ETP) is a financial instrument traded on a stock exchange, like shares. They can provide investors with exposure to a huge variety of investments, such as equities, commodities, fixed income, and cryptocurrencies, and can often be purchased through tax-efficient wrappers.

    Similar to shares, ETPs can be bought and sold whenever the stock exchange is open as prices are quoted throughout the day, and can often be purchased through tax-efficient wrappers.
  • Every share of BITC is ‘physically backed’ by an amount of bitcoin, which is securely stored with a custodian. You can see how much bitcoin is backing your shares by checking the daily Coin Entitlement figure (i.e. how much bitcoin each BITC Security entitles the holder to).
  • We believe there are three main investment cases for bitcoin: strategic, fundamental and tactical. You can learn more about these here.
  • CoinShares is Europe’s largest digital asset ETP provider with over $2.9bn in assets under management for clients across the continent (as of 4 January 2021).


    We pioneered the first regulated bitcoin fund in 2014, and are solely focused on cryptocurrencies and digital assets.


  • CoinShares Physical Bitcoin is listed on the SIX Swiss Exchange in Zurich, Switzerland's principal stock exchange.
  • The risk factors relating to the underlying cryptocurrencies are outlined in the Risk Factors section of the Prospectus.
  • ETPs provide exposure to a wide range of asset classes and indices that can be difficult or costly to access directly, whilst trading through the same brokers and platforms as shares.

    Similar to shares, ETPs can be bought and sold whenever the stock exchange is open as prices are quoted throughout the day, and can often be purchased through tax-efficient wrappers.

Contact

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It should, in particular, be noted that the Exchange Traded Products (ETPs) referenced on this Website have not been, and will not be, registered under the Securities Act 1933, as amended of the United States (the "Securities Act"), or with any securities regulatory authority of any state or other jurisdiction of the United States and may include securities in bearer form that are subject to United States tax law requirements. Such ETPs may not be offered, sold or (in the case of bearer securities) delivered within the United States or to, or for the account or benefit of, US persons, except pursuant to offers and sales in an offshore transaction that occurs outside the United States in accordance with the applicable provisions of Rule 903 of Regulation S under the Securities Act or pursuant to another available exemption from the registration requirements under the Securities Act.

Prospectus

An investment in the products may only be made based on the prospectus, the Final Terms and the Key Information Document and will be subject to the terms and conditions contained within. A copy of the current prospectus, the Final Terms and the Key Information Document are available on this Website.

Risk Warnings

Investors should always bear in mind that:

  • Cryptoassets are a highly volatile asset class. Your capital is at risk. The value of cryptoassets can go down as well as up and you can lose your entire investment.
  • Past performance is not an indication of future performance.
  • Exchange rate fluctuations may affect the value of investments.

Investors should refer to the section entitled “Risk Factors” in the prospectus for further details of these and other risks associated with an investment in the products before investing.

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