Exchange-traded funds (ETFs) and exchange-traded notes (ETNs) are investment tools that trade on traditional stock exchanges. They offer a way to gain exposure to digital assets without the need to hold them directly.
For many investors, these products offer a more secure and efficient way to add Bitcoin to a portfolio. They bridge the gap between the wild west of crypto and the regulated framework of traditional finance.
Simplified Security and Peace of Mind
A major advantage of using these regulated products is the removal of the personal risks associated with digital storage. When you invest through a fund, professional custodians handle the security.
This means you do not have to manage private keys or worry about the technicalities of digital wallets. This approach effectively eliminates the fear of losing access to your investment due to a forgotten password.
Integration with Traditional Finance
Because these products are listed on major exchanges, they can be held within standard investing platforms. You can view your Bitcoin exposure alongside your shares and bonds in one place.
These funds are also well-suited for regular investment strategies, such as pound-cost averaging, which allows you to build your position over time through automated monthly contributions.
Why the FCA Changed Its Mind
For years, the Financial Conduct Authority (FCA) blocked retail investors from accessing crypto-linked securities. However, on 8 October 2025, the regulator officially lifted this ban for crypto ETNs.
The change of heart came as the market matured. The FCA noted that custody frameworks and disclosure standards have improved significantly, making these products safer for the general public.
By allowing these products on the London Stock Exchange, the UK now provides a regulated alternative to offshore, unregulated crypto exchanges.
Tax Efficiency and ISA Eligibility
A massive benefit for UK investors is the new tax-advantaged status of these products. Since the October 2025 rule change, crypto ETNs can be held within Self-Invested Personal Pensions (SIPPs).
Initially, they were also allowed in Stocks & Shares ISAs. However, as of 6 April 2026, they have transitioned into the Innovative Finance ISA (IFISA) category.
Holding your crypto exposure within these tax wrappers can protect your gains from capital gains tax. This is a significant advantage over buying coins directly on a standard exchange.
Professional Management and Execution
By choosing a fund from established providers like iShares or WisdomTree, you benefit from institutional-grade oversight. These managers ensure the fund tracks the price of Bitcoin as accurately as possible.
This hands-off approach is often preferred by those who want the potential returns of the crypto market without the daily stress of managing the assets manually.
Read our full indie guide to cryto investing
Popular Bitcoin ETFs and Their Roles
The US market reached a major milestone in early 2024 when the first spot Bitcoin ETFs were approved. Since then, a few key players have emerged as the gold standard for investors looking for liquidity and low fees.
IBIT (iShares Bitcoin Trust) by BlackRock is currently the world’s largest Bitcoin ETF. It is favoured for its massive liquidity and the backing of the world’s largest asset manager.
FBTC (Fidelity Wise Origin Bitcoin Fund) is its primary rival. Fidelity is unique because it handles its own Bitcoin custody rather than using a third-party provider, which appeals to those who value an all-in-one institutional setup.
GBTC (Grayscale Bitcoin Trust) was originally a private trust before converting to an ETF. It holds a significant amount of Bitcoin but generally carries higher management fees than its newer competitors.
BITB (Bitwise Bitcoin ETF Trust) is popular among crypto-native investors. Bitwise is known for its transparency, even publishing the digital addresses of its Bitcoin holdings so the public can verify the assets on the blockchain.
BITO (ProShares Bitcoin Strategy ETF) differs from the others because it uses futures contracts rather than holding physical Bitcoin. This makes it a tool for traders rather than long-term “buy-and-hold” investors.
ARKB (ARK 21Shares) and HODL (VanEck Bitcoin ETF) are highly competitive on price. They often appeal to retail investors looking for the lowest possible expense ratios to maximise their long-term returns.
Indie Insight: While you cannot buy these specific US ticker symbols in a standard UK Stocks & Shares ISA, the FCA rule change means that equivalent UK-listed versions (ETNs) from providers like WisdomTree and 21Shares are now available. These UK products follow the same logic as the US giants, they offer a regulated, hands-off way to profit from Bitcoin’s price.
Major Bitcoin ETNs
iShares Bitcoin ETP (IB1T) BlackRock brought its expertise to the UK market with this physically backed product. It is highly popular due to its low management fee (initially around 0.15%) and the security associated with the iShares brand.
WisdomTree Physical Bitcoin (BTCW) WisdomTree was one of the first to list on the LSE. Their product is 100% physically backed by Bitcoin held in cold storage, meaning the digital assets are kept offline to protect against hacking.
21Shares Bitcoin Core ETP (CBTC) This is designed as a low-cost entry point for UK investors. It specifically targets long-term holders by offering one of the lowest ongoing management fees on the London market (roughly 0.10%).
Invesco Physical Bitcoin (BTIC) Invesco provides a robust, physically backed ETN that tracks the spot price of Bitcoin. It is widely available across major UK trading apps and focuses on high liquidity for easy buying and selling.
Major Ethereum ETNs
WisdomTree Physical Ethereum (ETHW) Following the same structure as their Bitcoin product, this tracks Ethereum. It allows investors to gain exposure to the second-largest cryptocurrency through the same regulated LSE framework.
21Shares Ethereum Core Staking ETP (ETHC) This is a more specialised product. In addition to tracking the price of Ethereum, it also captures staking rewards, which are essentially small dividends paid out by the Ethereum network.
Bitwise Physical Ethereum ETP (BETH) Bitwise is known for its high level of transparency. This ETN is physically backed and offers a straightforward way to track Ethereum without the need for a digital wallet.
Where can you buy them?
Most major UK investment platforms have started supporting these ETNs. You can typically find them on:
- AJ Bell and interactive investor (often used for SIPP and ISA accounts).
- Trading 212 and Freetrade (popular for low-cost mobile trading).
- Hargreaves Lansdown (availability may depend on their specific “appropriateness” tests).
