What are CoinShares XBT Provider crypto ETPs
7 min read
- Finance
In today's dynamic financial landscape, investors are constantly seeking opportunities to diversify their portfolios. With the rise of cryptocurrencies, finding a reliable and regulated investment avenue to gain exposure to this nascent asset class has become increasingly important. Enter CoinShares XBT Provider ETPs, a pioneering financial product that offers investors a convenient and regulated way to gain exposure to cryptocurrencies. In this article, we will explore the key features and benefits of CoinShares XBT Provider ETPs, shedding light on their structure, transparency, trading mechanisms, costs, and how to invest in them.
CoinShares XBT Provider ETPs: a Swedish original
The journey of CoinShares XBT Provider ETPs began in Sweden, where the Swedish Financial Supervisory Authority (SFSA) led the way in introducing crypto-based ETPs to the market. In 2015, XBT Provider launched the groundbreaking Bitcoin Tracker One ETP, becoming the first-ever open-ended security based on Bitcoin’s performance available to investors on a traditional securities exchange.
In June 2024, XBT Provider rebranded as CoinShares XBT Provider, reflecting the full integration of Swedish products into CoinShares’ global strategy.
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. These ETPs have gained significant popularity, attracting over 100,000 investors and managing an impressive $3 billion USD in assets under management as of March 18, 2025.
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.
Structure and transparency
CoinShares XBT Provider Tracker ETPs and Physical ETPs do not use the same structure:
The former employs a synthetic replication method to track the performance of Bitcoin or Ethereum. This method ensures that investors can gain exposure to these digital assets without directly owning them. Instead, each time an XBT Provider ETP is purchased, an obligation is created to pay the investor an amount based on the performance of the relevant digital currency, minus the applicable fee.
To provide transparency and reassurance, CoinShares XBT Provider ensures that the outstanding obligations of its ETPs are adequately collateralized. This is achieved by the Guarantor holding the relevant digital currency in either physical or synthetic form. Additionally, The Network Firm, a trusted third-party service provider, offers a proof-of-reserves service, further verifying that XBT Provider’s outstanding obligations are properly collateralized.
The latter category is physically backed by an equivalent amount of the underlying asset. This means that for each investment in one of these ETPs, the corresponding amount is transferred to the issuer and stored with institutional-grade custodians, Komainu and Zodia. Moreover, assets using a proof-of-stake mechanism are securely staked through our custodian partners’ infrastructure, with staking rewards shared with investors.
To ensure full transparency regarding the actual collateralization of our ETPs, CoinShares XBT Provider’s reserves are publicly accessible to investors through the LedgerLens tool.
Trading and accessibility
CoinShares XBT Provider ETPs can be traded on exchanges, just like stocks and shares. For instance, on Nasdaq Stockholm, these ETPs are available for trading during regular exchange hours, from 09:00 to 17:25 local time. Investors can execute trades through their preferred broker or bank, as long as they have access to the stock exchange where the product is listed.
In Sweden, the two largest brokers, Nordnet and Avanza, provide access to CoinShares XBT Provider ETPs, ensuring that investors have a user-friendly and accessible platform for trading these regulated crypto investment products. This ease of access allows investors to seamlessly monitor and manage their CoinShares XBT Provider ETPs alongside their other investments, streamlining their portfolio management process.
Costs and management fees
When considering any investment, it is important to understand the associated costs. CoinShares XBT Provider ETPs come with two types of fees: management fees and trading costs.
The management fee is an annual fee, accrued on a daily basis, and covers the costs incurred by the issuer in managing the daily operations of the ETP. For CoinShares XBT Provider Tracker ETPs, the management fee stands at 2.5% per annum. For CoinShares XBT Provider Physical ETPs, the management fees range from 0% to 1.5% per annum. While this fee is relatively competitive, investors should carefully evaluate it in the context of their investment goals and the potential returns they expect to achieve.
Trading costs, on the other hand, are variable and external to the ETP product itself. These include both the costs that are paid to the investor's broker or bank for executing trades on their behalf, and the bid/ask spread on exchange. It is essential for investors to consider these trading costs as part of their overall investment strategy and evaluate the impact they may have on their returns.
What sets CoinShares XBT Provider ETPs apart
CoinShares XBT Provider ETPs offer several key advantages that differentiate them from other ways to invest in cryptocurrencies.
Firstly, CoinShares XBT Provider AB’s’ Prospectus is approved by the Swedish FSA (Finansinspektionen) and the products are listed on Nasdaq Nordic in Stockholm, providing investors with a level of oversight and compliance that may be lacking in other crypto investment options. This regulatory framework enhances investor protection and fosters trust in the product.
Secondly, CoinShares XBT Provider ETPs are available on traditional exchanges, making them more accessible and investor-friendly. Investors can trade these ETPs using the same platforms and mechanisms they use for stocks and shares, eliminating the need for additional accounts or complicated processes.
Thirdly, the ability to monitor CoinShares XBT Provider ETPs alongside other investments provides a holistic view of an investor's portfolio. This integration allows for better risk management, diversification, and overall portfolio optimization.
CoinShares XBT Provider ETPs are eligible for ISK, a popular investment vehicle due to its optimized taxation.
With its current offerings, CoinShares XBT Provider enables investors to gain exposure to established cryptocurrencies, such as Bitcoin and Ether, as well as emerging ones with a potentially higher risk-reward ratio. Moreover, it shares staking rewards from its proof-of-stake assets (Solana , Polkadot and Cardano), making these ETPs among the most competitive products available.
Lastly, CoinShares XBT Provider has been operating since 2015, making them a seasoned player in the crypto investment space. This longevity demonstrates their commitment to providing investors with reliable and trustworthy investment products.
How to invest in CoinShares XBT Provider ETPs
Investing in CoinShares XBT Provider ETPs is straightforward. As mentioned earlier, these ETPs can be traded on exchanges, including Nasdaq Stockholm. Investors can place trades through their preferred broker or bank, as long as the chosen platform has access to the stock exchange where the product is listed.
In Sweden, Nordnet and Avanza are the two largest brokers, offering investors the convenience of trading CoinShares XBT Provider ETPs on their platforms. Investors can explore these platforms, conduct thorough research, and seek advice if needed, to make informed investment decisions.
In conclusion, CoinShares XBT Provider ETPs offer investors a regulated and convenient way to invest in cryptocurrencies. With their synthetic replication method, transparent collateralization, accessibility on traditional exchanges, and a history of successful operations, CoinShares XBT Provider ETPs provide a reliable option for investors looking to diversify their portfolios with digital assets. However, as with any investment, investors should carefully assess their investment goals, risk tolerance, and consult with financial professionals to ensure that CoinShares XBT Provider ETPs align with their individual needs.
Published onSept 26th, 2023
