Hey everyone, I’m looking for help with tax questions about my cryptocurrency ETP holdings through Scalable Capital in Germany. I own two physically backed products - one tracking Bitcoin (ISIN: pGB00BLD4ZL17) and another for Ethereum (GB00BLD4ZM24). Both claim to be physically staked.
I’m trying to figure out if these ETPs follow the same one-year holding period rule that applies to direct cryptocurrency purchases. From what I’ve researched so far, it seems like they should qualify for the same treatment, but I’m worried the tax authorities might treat them differently.
Has anyone dealt with similar products in their German tax returns? I want to make sure I handle this correctly and avoid any issues with the Finanzamt. Any personal experiences or advice would be really helpful. Thanks!
I’ve been dealing with these products for two years. Here’s what I’ve learned: physically backed crypto ETPs are technically securities, not direct crypto holdings, which creates some gray area in German tax law. But my tax advisor confirmed they should still qualify for the one-year exemption under private sale rules since they actually hold the underlying crypto assets - no synthetic replication. The key is that the ETP owns the actual Bitcoin or Ethereum, not derivatives or swaps. I used this approach on my last tax filing and the Finanzamt didn’t push back. Just document your holding period properly and keep all your Scalable Capital transaction records - you’ll need the exact purchase and sale dates for calculations.
Interesting question! I’m wondering though - have you checked if the physical staking creates extra taxable events? I’ve been reading mixed info on this. The staking rewards these ETPs generate might count as separate income even if you never sell the ETP shares.
What made you pick these over buying crypto directly? I’m looking at similar ETPs but not sure if the convenience is worth the tax complications. Does Scalable give you specific tax docs for these, or just the standard transaction confirmations?
One more thing - any difference in how the Finanzamt treats Bitcoin vs Ethereum ETPs? They should be the same, but crypto regs are pretty inconsistent. Anyone notice different treatment between crypto ETPs?
yeah, this stuff gets confusing fast. i had the same worries with my btc etp last year but just treated it like regular crypto for taxes. the one-year rule should apply since it’s physically backed like you mentioned. watch out for the staking though - that could complicate things if they’re earning rewards. might be worth asking a steuerberater if you’re holding a lot.