Crypto glossary

Crypto ETP (ETN)

Definition

A crypto ETP is an exchange-traded product, usually a note listed in Europe, that tracks one or more cryptocurrencies and is often backed by the actual coins.

Exchange-traded products is the umbrella name for anything that trades on a stock exchange like a share and follows an underlying asset. In Europe most crypto products are exchange-traded notes (ETNs) or similar debt securities rather than ETFs, because EU UCITS fund rules do not allow a fund to hold a single cryptocurrency. They are listed on venues such as Xetra, SIX Swiss Exchange and Euronext.

Physically backed ETPs hold the coins with a custodian, so each unit corresponds to a fixed amount of crypto; synthetic ones replicate the price through derivatives. Investors can buy them through a normal brokerage account, with no wallets or keys, and some ETPs also pass on staking rewards.

Because an ETN is a debt instrument, holders depend on the issuer's structure and collateral arrangements, not only on the coin's price. Fees, bid-ask spreads and tracking differences vary widely. Before buying, check the prospectus for backing, custodian, redemption rights and staking terms.

Example

A Spanish investor buys a physically backed bitcoin ETP on Xetra through her usual broker, and the issuer holds the matching BTC with a regulated custodian.

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