WisdomTree Physical Bitcoin (ISIN GB00BJYDH287, ticker BTCW) is an ETP (Exchange Traded Product) physically backed by Bitcoin, launched by WisdomTree in December 2019.
The goal is to provide European investors with exposure to the price of Bitcoin without having to purchase, store, and manage the cryptocurrency directly.
It is listed on multiple European exchanges, including London (LSE), Xetra (Germany), SIX Swiss Exchange, Euronext (Paris and Amsterdam).
Main Features
| Feature | Detail |
| Physical replication | The product is physically backed: it holds real Bitcoin as underlying. |
| Costs / Fees (TER / MER) | Recently, the fee has been lowered: from 2025, a MER/TER of 0.25% applies for the regular version. Additionally, until December 31, 2025, there is a reduction or exemption that brings the fee to 0.15% annually. |
| Volume / Assets under management | It is among the largest Bitcoin ETPs in Europe. The assets under management are measured in hundreds of millions — over 1 billion USD and are widely distributed in European markets. |
| Historical performance | High volatility but significant returns over the years with a bull trend: for example, +75-+100% on an annual basis in some recent periods; over multiple years, the cumulative return is very high. |
| Regulation / investor access | In the UK, from October 2025, the Financial Conduct Authority (FCA) has approved retail investors’ access to this type of ETP; previously, it was limited to professional investors only. |
Advantages vs risks
Advantages
- Simplicity: no need to manage private keys, wallets, or direct custody risks. Everything is managed through the ETP.
- Transparency and liquidity: listed on regulated markets; it can be bought and sold like a stock/ETF.
- Reduced long-term costs: the reduction of the TER to 0.15-0.25% makes it competitive compared to other ETP/BTCW.
- Regulatory Security: compliance with European obligations and approvals such as FCA for retail.
Risks
- High volatility: Bitcoin is a highly volatile asset, and the ETP reflects its fluctuations. Negative periods can be very pronounced.
- Tracking error risk: difference between the performance of the “pure” Bitcoin and that of the ETP due to costs, trading spreads, replication timing.
- Legal structure: although it is physical, it is a listed product with characteristics that may depend on external custody, local regulations, issuer risk.
- Taxation / local regulatory compliance: there may be different tax implications in Italy, in Europe; it is necessary to check the current regulations on the administered regime, capital gains taxation, etc.
Differences with US ETF / ETP
- “In-kind” vs cash structure: In Europe, ETPs like BTCW can allow “in-kind” creations/redemptions, meaning exchanges of actual Bitcoin for shares, which reduce costs and waste. In the USA, due to SEC regulation, transactions often occur in cash, which can create inefficiencies.
- Regulatory terms and access: in the USA, new Bitcoin ETFs must comply with often stricter SEC requirements; in Europe, regulation is evolving but has approved ETP/ETN products like this with specific custody, disclosure, and transparency requirements.
Latest News and Trends
- In March 2025, WisdomTree reduced the “standard” fee from 0.25% to 0.15% for the ETP Physical Bitcoin, at least until December 31, 2025. This move aims to make it the lowest-cost product among physical Bitcoin ETPs in Europe.
- In October 2025, the FCA approved that from October 20, 2025, the ETP will be accessible to retail investors in the UK, no longer only to professionals.
Implications for Italian / European investors
- If you are a resident in Italy or Europe, you can use BTCW through brokers/banks that offer access to the exchanges where it is listed (e.g., Xetra, Euronext, SIX).
- Always check whether the product is UCITS or not: this affects the tax regime, legal protection, and suitability in certain portfolios/investors. So far, BTCW is not a standard UCITS ETF, but it is a physical ETP.
- In Italy, in addition to capital gains from capital gain, one must consider taxes on foreign securities, possible stamp duty, administered vs declarative regime, etc. It is useful to consult an accountant with experience in cryptocurrencies.
Critical Analysis: Is it Worth it Now?
- The fact that the cost has decreased to 0.15-0.25% makes it very competitive: many Bitcoin ETPs/ETNs have higher costs. This can make a difference in the long term, especially in scenarios of moderate growth.
- Volatility remains a central element: if you invest with a long horizon (3-5-10 years), you might benefit, but the risks of high drawdowns are also real.
- The recent green light to retail in the UK could be an indicator that regulation is improving elsewhere as well: this could lead to greater liquidity, better transparency, but also more competition.
WisdomTree Physical Bitcoin (BTCW) represents one of the most solid solutions for those seeking exposure to Bitcoin in Europe without having to directly manage the cryptocurrency.
With competitive costs, physical replication, and regulation evolving towards more retail access, it is a product to watch. However, it is not without risks: volatility, regulatory complexity, and tax issues are elements that require attention.
Source: https://en.cryptonomist.ch/2025/10/18/wisdomtree-physical-bitcoin-product-overview/