Buy crypto ETFs and ETNs
Cryptocurrencies, or cryptos for short, were once a niche asset class but have become an increasingly popular investment in recent years. As the crypto market has grown, there have become more ways to invest in it.
Cryptocurrencies, or cryptos for short, were once a niche asset class but have become an increasingly popular investment in recent years. As the crypto market has grown, there have become more ways to invest in it.Open an account
At DEGIRO, instead of directly buying cryptocurrencies, you can invest indirectly through trackers, such as exchange-traded funds (ETFs) and exchange-traded notes (ETNs). Please note: Investing in crypto trackers comes with high risk and we advise you to only invest in financial products that match your knowledge and experience.
We offer a wide selection of crypto trackers, the majority of which are ETNs. We also offer crypto ETFs; however, they track blockchain-related indices but not cryptocurrencies directly.
These are examples of crypto trackers from the four biggest issuers (HANetf, Coinshares, Wisdom Tree & 21Shares) based on fund size:
|DE000A28M8D0||Vectors Bitcoin ETN||Bitcoin||VanEck|
|GB00BLD4ZL17||CoinShares Physical Bitcoin||Bitcoin||CoinShares|
|CH0454664001||21Shares Bitcoin ETP||Bitcoin||21Shares|
Vectors Bitcoin ETN
CoinShares Physical Bitcoin
21Shares Bitcoin ETP
The information included here is for informational purposes only and does not provide a recommendation for these types of financial instruments or any individual product mentioned.
Cryptocurrencies are a form of digital money that allows payments to be made electronically and function in a similar way to standard currencies that use physical cash. However, unlike standard currencies that can be exchanged physically, cryptocurrencies are only exchanged electronically using lines of computer code. Well-known cryptocurrencies are Bitcoin and Ethereum.
Cryptocurrencies do not have legal tender status. This means there is no legal obligation for them to be accepted. Another big difference between cryptocurrencies and paper currencies is how they are structured. Official currencies are centralised and guaranteed by a central bank that controls their supply. So, for example, the European Central Bank guarantees the euro and controls its supply in the euro area. Cryptocurrencies, meanwhile, are unregulated and decentralised. This means that no central bank guarantees them or controls their supply.
If you are an experienced investor and want to invest in crypto trackers, such as exchange-traded funds (ETFs) and exchange-traded notes (ETNs), our comprehensive platform and low rates makes it easy to do so.
ETFs and ETNs are two types of exchange-traded products (ETPs), and they are both designed to track an underlying asset. You may be more familiar with ETFs, which usually track an index or sector. In contrast, ETNs are unsecured debt securities that track an underlying asset. They are similar to bonds, but they do not pay interest payments, and their return is based on the performance of the underlying asset.
There are several advantages of investing in crypto trackers:
You can use your existing DEGIRO account to get your foot in the door of the crypto market. There is no need to set up a crypto wallet or use a crypto exchange.
Crypto trackers are bought and sold on the stock exchange like regular stocks are, making them relatively simple to trade.
Indirect investment helps mitigate third-party account risks such as transferring funds to the wrong account and losing private keys.
Due to the high risk and complexity of crypto trackers, they are not suitable for beginning investors. It is possible to lose your entire investment.
Crypto is a highly speculative investment with the potential for intense price swings. The crypto market is in its very early stages, and prices can be extremely volatile. There are high risks involved when investing in crypto trackers, and it is important to research and understand these products completely and all the risks involved before investing.
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