ETN (Exchange Traded Note)

You buy an ETN (Exchange Traded Note) on a stock exchange, just like a share. Legally, it is a debt security: the issuer, often a special purpose vehicle set up for this, promises you an amount that tracks the price of an underlying asset – for Bitcoin ETNs, the bitcoin price minus ongoing costs.^[1] ETNs are a type of ETPGlossaryETP (Exchange Traded Product)Umbrella term for exchange-traded securities such as ETFs, ETCs and ETNs. With a Bitcoin ETP, you hold a security that tracks the price – but no bitcoin keys of your own.On the learning path: Stage 4 · Step 1 – Ways to get Bitcoin →In the glossary →×.

Issuer risk

Unlike with an ETF, your money isn’t held as protected, segregated fund assets. If the issuer becomes insolvent, you can lose money.^[1],[2]

Bitcoin ETNs are usually physically backed: real bitcoin are held with a custodianGlossaryCustodian (custodial)A provider such as an exchange or app that holds the private keys for you. Convenient, because support can help if you lose your password – but you don’t hold the bitcoin yourself and depend on the provider paying out.On the learning path: Stage 5 · Step 1 – Understanding custody →In the glossary →× for the notes issued.^[3] That reduces the risk but doesn’t rule it out.^[2] The prospectus tells you who holds the bitcoin, how the collateral would be realised in an emergency and whether you can have bitcoin delivered to you.

Tax

In Germany, according to justETF, income from Bitcoin ETNs is generally subject to tax on investment income (Kapitalertragsteuer). Physically backed ETNs with a delivery option may be treated like real bitcoin; gains would then be tax-free after more than one year of holdingGlossaryHolding period (speculation period)In Germany, the gain from selling privately held bitcoin is tax-free if more than one year passes between purchase and sale (§ 23 EStG, as of September 2026). Each purchase has its own holding period.On the learning path: Stage 6 · Step 3 – Bitcoin & tax →In the glossary →×.^[3] How a particular product is classified is something to check with your broker or a tax adviser. Other countries have their own rules – see Bitcoin tax around Europe.

We deliberately don’t name individual ETNs. Selection criteria are in Bitcoin ETPs in your securities account.