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Cryptocurrencies like bitcoin or Ethereum are exciting, but for many people, they seem technically too complicated – wallets, private keys, exchanges, and security risks can be off-putting.
The good news is that Switzerland offers a simple, regulated, and risk-optimised solution to participate in the crypto market – called crypto ETFs or, more accurately, crypto ETPs. These products can be traded through regular brokerage accounts, work like stocks or funds, and don’t require any special knowledge.
For Swiss investors who value comfort, control, and transparency, this is an accessible way to integrate digital assets into their portfolio.
Table of Contents
- What are crypto ETFs – and how do they differ from traditional cryptocurrencies?
- Why is directly buying bitcoin & Co. too complicated for many?
- How do crypto ETPs work in practice – and what products are available?
- Why is a crypto ETF often the better starting point for investors?
- How does Alpian integrate crypto ETFs into its investment strategies?
- How does a bitcoin ETP differ from a diversified crypto ETP?
- How should Swiss investors weight crypto ETFs?
- Conclusion: Are crypto ETFs a sensible entry into the digital financial market?
What are crypto ETFs – and how do they differ from traditional cryptocurrencies?
Many people assume that the term "crypto ETF" refers to a regular fund product. Strictly speaking, in Switzerland, these products are usually legally considered Exchange Traded Products (ETPs) – meaning exchange-traded debt securities that track the price of bitcoin or a basket of cryptocurrencies. However, the term "crypto ETF" has become common in everyday language, mainly because the investment experience is very similar: the ETF can be bought through the stock exchange, held in a brokerage account, and tracks a base asset transparently.
Unlike directly holding cryptocurrencies, investors in an ETP do not need to set up a wallet or manage private keys. The product is stored by a regulated issuer, often with physical backing of the coins (such as in cold storage). The price development of the ETP follows the price of the respective coin or index, minus an annual management fee.
The result: A crypto ETF combines the world of digital assets with the familiar structure of traditional investments. For many Swiss investors focused on wealth-building, this is a clear advantage.
Why is directly buying bitcoin & Co. too complicated for many?
A significant portion of the population is interested in cryptocurrencies – whether out of curiosity, belief in the future, or simply the desire to diversify their portfolio. However, when it comes to the actual purchase process, many people drop out. And this is understandable.
To directly buy bitcoin, one needs a wallet. This could be digital (online or on a smartphone) or physical (e.g., a hardware wallet). Regardless of the type, the keys to the wallet – the so-called private keys – must be securely stored. If they are lost, access to the assets is gone. Forever.
Additionally, the purchase itself usually occurs through crypto exchanges, often based abroad. It requires additional accounts, verifications, transfers, and a certain level of technical knowledge. The risk of hacking or fraud on unreliable platforms should not be underestimated either.
In short, the direct route to cryptocurrencies is not impossible, but it is cumbersome – and for many, it simply does not fit with their everyday life or risk tolerance. Those who still want to participate find crypto ETFs to be a suitable alternative.
How do crypto ETPs work in practice – and what products are available?
In Switzerland, crypto ETPs are now widely available – especially on the SIX Swiss Exchange and the BX Swiss. Both products tracking individual cryptocurrencies like bitcoin or Ethereum and so-called basket ETPs, which combine multiple coins, are offered.
The structure is simple: The ETP is a tradable security that reflects the price of the respective coin or index. In most cases, the products are physically backed – meaning for each unit issued, the issuer holds the corresponding amount of cryptocurrency, usually with a professional custodian that provides security certificates and insurance coverage.
Notable providers include:
21Shares, with products like the 21Shares bitcoin ETP (ABTC) or the Crypto Basket ETP (HODL).
VanEck, offering physically backed products on bitcoin and Ethereum.
CoinShares, with the Physical bitcoin ETP.
WisdomTree, known for inexpensive, transparent ETPs.
Bitwise / ETC Group, offering broad index products covering the top 20 cryptocurrencies.
These products can be traded via regular brokerage accounts. They appear like stocks or ETFs in the account and can be easily bought or sold.
Why is a crypto ETF often the better starting point for investors?
For many, the desire to participate in the crypto market comes with a need for security. They want to avoid the risk of losing money through technical errors or lack of experience. This is where crypto ETFs come in.
They make investing in digital assets as easy as buying a Nestlé stock or an SMI ETF. The process is carried out through the familiar online banking environment or through the digital wealth manager. From a tax perspective, crypto ETFs are also straightforward: In Switzerland, private capital gains are generally tax-free – even with ETPs. No withholding tax applies, as there are no ongoing earnings paid out.
Particularly attractive for many is the opportunity to integrate crypto as a small allocation into their existing portfolio – without the need for separate structures, additional platforms, or new passwords.
How does Alpian integrate crypto ETFs into its investment strategies?
Alpian views crypto as a regular asset class – with opportunities, risks, and a clear focus on only investing where it adds genuine value to the portfolio. This means: No blanket crypto offering for all clients, but targeted integration – tailored to the risk and return profile of each client.
In the "Essentials" mandate with the Global+Crypto plan, crypto is considered a strategic component starting at the Balanced risk profile. Here, the weighting is:
2.5% for balanced profiles
Up to 10% for very aggressive profiles
Importantly: Less risk-tolerant clients do not receive any crypto allocation because it simply does not match their profile.
In the "Managed by Alpian" mandate, crypto can also be part of the strategic allocation. Whether – and to what extent – this happens depends on the optimisation model. There may also be tactical allocations if interesting opportunities arise from the market perspective. Prerequisite: The client has not excluded crypto investments during the profiling process.
In both cases, crypto investments are exclusively implemented through exchange-traded ETPs – safe, regulated, and integrated into the existing portfolio.
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How does a bitcoin ETP differ from a diversified crypto ETP?
A bitcoin ETP is a focused product: It tracks only the bitcoin price. This makes it particularly suitable for those who view bitcoin as "digital gold" – the dominant cryptocurrency with a high market capitalisation and lower volatility compared to altcoins.
A crypto ETP with multiple coins – a so-called basket – spreads the investment across different projects. This includes Ethereum, Solana, Cardano, and other coins with independent ecosystems.
This means:
More diversification
Greater opportunities during boom phases
But also: stronger fluctuations and potentially higher costs
Both types of products have their merits – depending on the investment strategy and risk tolerance. Those who believe in bitcoin's long-term potential may prefer the single-product option. Meanwhile, those looking to capitalise on the overall crypto sector’s growth may find the crypto index a fitting solution.
How should Swiss investors weight crypto ETFs?
A balanced portfolio is based on a clear risk structure. Crypto ETFs are highly volatile investment components – they offer great potential, but also the possibility of significant setbacks.
Many financial experts recommend an allocation between 1% and 5% – depending on risk appetite. In very aggressive strategies, the allocation can rise to 10%. The key is not just the size of the allocation, but also regular rebalancing. Because, especially during strong price movements, the crypto allocation can quickly become disproportionate.
For those who do not want to monitor this manually, digital offerings like Alpian’s mandate can be used. There, allocations are regularly reviewed and automatically adjusted – with the aim of keeping the portfolio balanced.
Conclusion: Are crypto ETFs a sensible entry into the digital financial market?
Crypto ETFs offer a regulated and technically simple way to participate in the digital asset market. They are ideal for investors who do not want to manage wallets themselves – but still want exposure to the future development of blockchain technology.
Switzerland, with its SIX, FINMA, and an open yet regulated financial architecture, offers the ideal conditions. The integration into brokerage accounts is simple, tax-efficient – and, with partners like Alpian, can even be fully managed.
What’s crucial: Crypto remains a volatile asset class. Those who choose to invest should do so consciously – with clear goals, appropriate allocation, and a portfolio that also works without crypto.
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