BITC vs 21BC - ETF Comparison

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When it comes to gaining exposure to Bitcoin through traditional investment vehicles, exchange-traded products (ETPs) and exchange-traded notes (ETNs) have become increasingly popular. Two prominent options available in the European market are BITC (CoinShares Physical Bitcoin) and 21BC (21Shares Bitcoin Core ETP). Both offer investors a regulated, accessible way to invest in Bitcoin without the complexities of direct crypto ownership. This comprehensive comparison dives into their features, costs, performance potential, and risk profiles to help you make an informed decision.

Understanding BITC: CoinShares Physical Bitcoin

BITC, or CoinShares Physical Bitcoin, is an exchange-traded note (ETN) that tracks the value of Bitcoin. It is designed to provide investors with exposure to the price movements of Bitcoin through a fully collateralized debt instrument. The ETN is backed by physically held Bitcoin, ensuring that its value closely follows the underlying asset.

One of the key features of BITC is its total expense ratio of 0.35% per annum, which covers management and custody costs. While this is higher than some competitors, it reflects the premium associated with CoinShares’ established reputation and secure custodial framework. The fund has been available since January 19, 2021, making it one of the earlier entrants in the European Bitcoin ETP space.

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Exploring 21BC: 21Shares Bitcoin Core ETP

21BC, or 21Shares Bitcoin Core ETP, is another EU-listed product offering exposure to Bitcoin. Issued by 21Shares—one of the leading crypto ETP providers in Europe—this product is structured as an exchange-traded product (ETP) and tracks the price of Bitcoin directly.

A standout feature of 21BC is its low expense ratio of just 0.21% per year, making it one of the most cost-efficient options for long-term Bitcoin investors. Launched on June 29, 2022, it entered the market after BITC but has quickly gained traction due to its competitive pricing and transparent structure. Like BITC, 21BC is accumulating in nature, meaning it reinvests any gains rather than distributing them as dividends.

Both BITC and 21BC are denominated in USD, listed in Europe, and fall under the cryptocurrency asset class. They are non-leveraged and target global investors seeking straightforward Bitcoin exposure.

Core Comparison: Key Features at a Glance

Below is a detailed breakdown of the primary characteristics of both products:

Fund Overview

Cost Efficiency: Expense Ratios Compared

The most significant difference between the two lies in their expense ratios:

This 14-basis-point difference may seem small, but over time, especially in a long-term holding strategy, it can meaningfully impact net returns. For cost-conscious investors, 21BC presents a compelling advantage.

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Performance and Risk Analysis

While historical performance data requires backtesting (which is not provided here), we can analyze the expected behavior of both products based on their structure and market conditions.

Expected Performance Metrics

Since both BITC and 21BC aim to track Bitcoin’s price directly, their cumulative returns should closely mirror Bitcoin’s performance over time, minus fees. Given that 21BC charges lower expenses, it is likely to deliver slightly higher net returns under identical market conditions.

Key performance indicators to monitor include:

These metrics help assess not just how much an investment earns, but how efficiently it earns it relative to volatility and drawdowns.

Risk Considerations

Bitcoin investments inherently carry high volatility. Therefore, understanding risk metrics is crucial:

Because both are backed by physical Bitcoin holdings and are non-leveraged, they do not introduce additional structural risks beyond market exposure.

Monte Carlo Simulation Insights

Monte Carlo simulations are powerful tools for projecting potential future outcomes based on historical data. By modeling thousands of possible price paths for Bitcoin, investors can estimate:

While actual simulation results require computational backtesting, the methodology remains valuable for stress-testing portfolios under various market scenarios.

Important Note: Monte Carlo forecasts are hypothetical and do not guarantee future results. Past performance is not indicative of future returns.

Keyword Integration for SEO

This analysis centers around several core keywords that reflect user search intent:

These terms naturally appear throughout the discussion, supporting search engine visibility while maintaining readability and relevance.

Frequently Asked Questions (FAQ)

What is the difference between BITC and 21BC?

BITC (CoinShares Physical Bitcoin) and 21BC (21Shares Bitcoin Core ETP) are both EU-listed products offering exposure to Bitcoin. The main differences lie in their providers and expense ratios—BITC charges 0.35% annually, while 21BC charges only 0.21%, making it more cost-effective.

Are BITC and 21BC safe investments?

Both products are issued by reputable firms and hold physical Bitcoin in secure custody. However, like all crypto investments, they are subject to market volatility and regulatory changes. They are considered safer than direct crypto trading for many investors due to their regulated exchange listing.

Do BITC and 21BC pay dividends?

No. Both funds follow an accumulating policy, meaning they reinvest any gains rather than distributing them as dividends or interest.

Can U.S. investors buy BITC or 21BC?

These products are EU-listed and may not be directly accessible to U.S. retail investors due to regulatory restrictions. U.S. investors often look to spot Bitcoin ETFs approved by the SEC instead.

Which is better for long-term investing: BITC or 21BC?

For long-term investors focused on minimizing costs, 21BC generally offers a better value proposition due to its lower expense ratio. However, some may prefer BITC for its longer track record and CoinShares’ brand recognition.

How do I buy BITC or 21BC?

You can purchase both through brokerage accounts that support European exchange listings. Ensure your broker provides access to SIX Swiss Exchange or other platforms where these ETPs/ETNs are traded.

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Final Thoughts

Choosing between BITC and 21BC ultimately depends on your priorities: brand trust and track record versus cost efficiency. While BITC was a pioneer in the European Bitcoin ETP space, 21BC offers a leaner fee structure that benefits long-term holders.

As the crypto investment landscape evolves, products like these bridge the gap between traditional finance and digital assets—offering simplicity, security, and transparency. Whether you're new to crypto or expanding your portfolio, understanding these tools is essential for smart decision-making.