Certificate, Bitcoin ETN or the coin itself: The impact of each path on tax and custody

Three paths for German investors to obtain Bitcoin: In-depth analysis of ETFs, bills and certificates

In Germany, anyone who wishes to hold Bitcoin in a securities account has three alternative paths: direct purchase of Bitcoin itself through a cryptocurrency exchange, exchange-traded notes (ETNs) that track the price of Bitcoin, and structured certificates issued by banks. The price movements of these three types of products are exactly the same, but there are significant differences in their core legal attributes: Who owns Bitcoin? If the provider goes bankrupt, who will be liable to you? What clause does the tax department apply to tax your income?

Price differences are the smallest part. According to CoinGecko data, at 03:00 a.m. on Wednesday, Bitcoin traded at US$85,543 and EUR 76,040, down 0.43% from the previous day. This price level applies to all three types of products. However, subsequent differences gradually emerged: reflected in tax treatment, cost structure, and how providers were disposed of when they went bankrupt.

Differences between Bitcoin certificates and Bitcoin ETNs

Both are debt securities, both traded on exchanges, and both are deposited in ordinary securities accounts. Still, they are two very different financial products.

Exchange Traded Notes (ETN)It is an exchange-traded debt security that tracks a single underlying asset (here, the price of Bitcoin). At major European issuers, ETN is usually backed by physical Bitcoin. Its term is usually open-ended, without leverage, and its ratio to the underlying asset remains constant over time (after deducting ongoing management fees).

Certificate is a collective term for structured securities issued by banks that promise to be paid according to a pre-fixed formula. The formula may be simple, but it may also include levers, knock-out obstacles, or fixed expiration dates. Physical Bitcoin support is not inherently characteristic.

In practice, this means that ETNs are designed for long-term holding, while leveraged certificates are suitable for short-term periods. Confusing the two as "Bitcoin products" can easily lead to buying the wrong tool.

ETN, ETP, ETC: Three terms from the same product family

These three abbreviations often appear on providers 'product pages:

• ETP (Exchange-Traded Products): A collective term for such exchange-traded products.
• ETN: Subcategory constructed in the form of debt securities.
• ETC (Exchange-Traded Commodities): Originally used as a label for commodities such as gold, some issuers also use it for crypto assets.

From a legal perspective, crypto-ETPs in Europe are almost always bearer debt securities, regardless of the alphabetical code used in the product name.

Bitcoin ETN: Bearer debt securities with redemption rights

Bearer debt securities are securities for which the issuer has a payment or delivery obligation to the holder. This is the key definition of every Bitcoin ETN: You don't own Bitcoin, you own claims on the issuer.

Large European issuers mitigate this risk by backing the notes they issue with physical Bitcoin and storing the coins in an independent custodian. Many products also grant investors redemption rights, which means the right to demand the delivery of deposited coins instead of cash. Both are specified in the Key Information Document (KID) and Release Terms and Conditions, and vary by product.

There are no segregated fund assets here. Funds legally separate investors 'funds from the fund company's own assets, which is exactly the protection debt securities lack. Instead, there is contractually promised collateral rather than legally protected segregated assets.

There is no Bitcoin Spot ETF in the EU: 20% limit on UCITS

The United States has a Bitcoin Spot ETF, but the European Union does not, due to rational considerations in the Fund Law. ETFs for retail investors are subject to UCITS rules in the EU, which require diversification: a single component asset must not exceed 20% of net asset value. A fund that only holds Bitcoin will reach 100% concentration and therefore cannot be authorized.

This is why all European Bitcoin products you hold at German brokerages are not funds, but debt securities. Search engines may suggest searching for Bitcoin ETFs, but in Germany, search results inevitably point to ETN and ETP. See the relevant overview for which products are traded on the German bourse and what should be noted when selecting them.

This has a side effect on savings plans and retirement benefits: Because they are not funds, some custodian banks treat crypto ETPs differently than ETFs, such as in fixed-term fixed investment plans, securities lending, or managed investment portfolios. This is not a matter of price, but depends on the internal regulations of the provider.

From a legal perspective, an ETN is a commitment made by the issuer, not a share of sequestered fund assets.

Bitcoin certificates: knock-out mechanism, leverage factor, and full loss risk

Two designs are particularly common among Bitcoin certificates, and their behavior is significantly different from ETNs.

Knock-out Certificate Use fixed obstacle bits. If the price hits that barrier, the note will expire and even if the price rebounds an hour later, the investment amount will return to zero. Its leverage effect stems from the distance between the price and the obstacle, so it is not constant.

Factor Certificate Then keep leverage constant by resetting at the daily closing price. During the volatile sideways phase, even if the Bitcoin price returns to its starting point over the weekend, there will be a loss of value. This phenomenon is called path dependence and is often underestimated.

For both designs, the same principle applies: the certificate is also a debt security of the issuing bank, except that no coins are deposited behind it. Therefore, in addition to market risk, issuer risk is also increased, and for leveraged products, there is a possibility that the principal will be completely zero while the underlying assets will still exist.

Bitcoin itself: Self-custody, mnemonics and wallet risks

The third path is through a cryptocurrency exchange and ideally eventually into your own wallet.

Self-custody means that you keep the private key of Bitcoin yourself, and no company is between you and the balance. Seed phrase is a series of words that can recover the key.

In this case, the issuer risk completely disappears. No one will go bankrupt because no one owes you anything. Other risks follow, and are no smaller: losing your device with no backup, discovering mnemonics, and mistakenly approving contracts in the wallet app. These risks cannot be passed on to third parties.

处于中间状态的情况是大多数新手实际选择的：硬币仍留在交易所。此时你确实拥有真实的比特币，但不拥有私钥，并且再次依赖一家公司，这次是一家需要在欧洲MiCA法规下作为加密资产服务提供商获得授权的机构。交易平台是否拥有该授权可在监管机构的公开登记册中查询，这在首次存款之前至关重要。

发行商风险与实物支持：与隔离基金资产的距离

发行商风险是指证券发行人无法履行义务的危险。对于加密ETN而言，这是核心因素，因为从法律上讲，票据仅仅是这种义务。

实物支持旨在限制损害。发行商为每张发行的票据购买实物比特币，由独立托管人存储，并质押给投资者。在破产情况下，该持仓应优先分配给票据持有人，而不是其他债权人。在实践中，效果取决于你可以在关键信息文件中查到的三点：支持是否完整、托管人是谁，以及是否在中间插入了信托结构。

这三种路径均不提供存款保险。每人每银行10万欧元的法定保护仅适用于账户余额，不适用于证券和加密资产。混淆两者会让你认为票据比实际情况更安全。

比特币ETN的税务：首欧元起征26.375%的资本利得税

这里是多年累积后产生最大差异的地方。ETN和证书属于证券，其收益计入德国所得税法（EStG）第20条下的投资收益。对此收入适用单独的税率：根据EStG第32d(1)条第1款，所得税率为25%。此外还需缴纳团结附加费，根据团结附加税法第4条，税额为税款的5.5%。合计为26.375%，缴纳教会税者略高。

该制度没有持有期概念。无论持有ETN三周还是十一年，税率都没有区别。税款通常由持有账户的机构直接预扣，你可以在结算单中找到。

唯一的减免来自储蓄免税额。根据EStG第20(9)条，每年可扣除1,000欧元，已婚联合申报夫妇为2,000欧元。该金额涵盖所有投资收益（包括利息和股息），且很快就会被用完。

证券形式的一个优势 remains：ETN的损失可以抵消其他投资收益，银行会自动运行亏损抵消池。对于直接持有的硬币，你需要自己在纳税申报表中跟踪这一点。

在财政部的草案中，2026年12月31日将受保护的现有持仓与在此日期之后购买的一切区分开来。

EStG第23条下的持有期：一年及1,000欧元门槛

Different terms apply to directly held Bitcoin. Such coins are considered other assets in private disposal transactions, and Article 23(1), paragraph 1, item 2 only capture "transactions where the period between acquisition and disposal does not exceed one year." Hold it for more than one year and sell it, and the proceeds are not subject to income tax.

During the year, personal tax rates apply, ranging from zero to 45% based on income, rather than the fixed 26.375%. In high-income situations, selling coins in the short term is more expensive than the same gain within the same ETN; it is cheaper in low-income situations.

There is also a threshold that is often misquoted. Article 23(3), paragraph 5, of the EstG states: "If the total proceeds realized from private disposal transactions during the calendar year are less than 1,000 euros, the proceeds are exempt from taxation." This is an exemption threshold, not a deduction. If the total income is exactly 1,000 euros, the full amount will be taxed, not just the amount above that line.

Allocation determines everything in the order of coins that are considered for sale, and in practice the principle of buying first, selling first is usually followed. If you buy in batches over several years, you need a clear record of each purchase.

The December 31, 2026 deadline in the Ministry of Finance draft

The coexistence of the two tax systems is not a long-term solution. On September 30, 2026, the Federal Ministry of Finance issued Draft Bill on Reform of Taxation on Certain Privately Held Crypto Assets 。According to the ministry's explanatory memorandum, the current classification is no longer consistent with the crypto market that has developed since then; the draft is undergoing inter-departmental consultation and is scheduled to be submitted to Cabinet for review.

In essence, future gains from crypto assets will be regarded as investment gains. The one-year holding period will be eliminated and the same tax rate that is already applicable to ETN will apply. Several tax companies have interpreted the grandfather clause from the draft: the new rules only apply to crypto assets acquired after December 31, 2026, while previously purchased positions continue to apply to the current holding period regulations.

There are two warnings about this. The ministerial draft is not a law, and deadlines and details in the legislative process may still change. And, even if implemented as drafted, it will affect today's purchase decisions: assets purchased before the end of the year will fall into protected existing positions, but not after.

What does this comparison of the three paths mean?

As long as the holding period regulations are in effect, coins held directly have significant tax advantages in long-term holding. If the new rules take effect on new acquisitions, this lead will narrow to differences in cost, custody and loss offset. People making decisions today for the next few years should calculate numbers for two scenarios, not just the current situation.

How to check the entity behind your Bitcoin ETN

Details are in two documents that issuers must release: key information documents and release terms. Both are accessible through the product page and the securities exchange page.

• Issuer and place of registration : Who issued the notes, in which country the company is located, and which bankruptcy law applies if problems arise?
• Level of support : Is each note fully backed by Bitcoin, is this written into the terms as a promise, or is it just a marketing intent?
• Custodian : Which company holds the coin, is it independent of the issuer, and what is the evidence of holding the coin?
• Redemption : Can you ask for the delivery of real coins, starting with what quantity and at what cost?
• Term and early redemption : Are the notes open and under what conditions can the issuer redeem them early?

For certificates, the formula components also include: knock-out obstacles, leverage, subscription ratio, and expiration date. Notes that cannot be explained in one sentence by the payout formula should not be placed in the portfolio.

Annual costs: Management fees, spreads and custody fees

Costs arise in different ways, which makes comparisons seem difficult at first.

For ETN, there is an ongoing management fee that issuers withdraw pro-rata from deposited positions. You don't see a separate fee explanation; the impact is in the price of the bill. There are also broker order fees, exchange bid-ask spreads and, depending on the provider, possible custody fees.

When purchasing directly, you pay the exchange's transaction fees, price differences, and network fees when withdrawing money into your wallet. There are no ongoing annual fees; people who choose to self-host bear the cost of purchasing a hardware wallet.

For certificates, order fees and spreads are usually added to a financing component that accumulates daily on leveraged products and creates a heavy burden over longer holding periods. Actual rates vary significantly; they are located in key information files for specific bills and should be checked here before purchase.

As a general rule of thumb for long-term holding: Continuing expenses are as strong as every year, while one-time costs are reduced in weight as the holding lasts.

Bitcoin in a portfolio: Key points in decision-making

Three paths lead to the same price and very different obligations. The following order helps in decision-making:

1. First determine the holding period and its tax issues. 以年为规划单位的人会将当前的持有期与预期的资本利得税进行比较；短期交易者可以将比较简化为成本和流动性。有关MiCA授权用于直接购买的交易平台的信息，请参阅加密交易所比较。
2. 在购买前建立记录。 购买日期、数量、价格和每批次的费用决定了未来的纳税申报表，对于直接持有的硬币，没有人会为你保存这些记录。你可以使用加密税务软件和组合跟踪器中的工具。
3. 将保管决策与购买决策分开。 对于ETN，发行商的托管人承担此工作；对于硬币，你在交易所和设备之间进行选择。设备之间的差异详见硬件钱包比较。

总结一切的一句话是：通过ETN和证书，你承担公司风险并获得方便的证券账户结算；通过硬币，你承担密钥的责任并保留目前的持有期优惠。哪种负担更适合你，才是真正的问题。