Crypto ETN, despite the recent rebound, 2026 remains a rather lackluster year for Bitcoin. Yet, this is also the year the MiCA regulation governing crypto platforms came into force. There are two main ways to access crypto assets. “Investors can gain indirect exposure via ETNs, like the ones we offer,” summarizes Menno Martens, a crypto specialist at VanEck Europe. “Or they can invest directly on a cryptocurrency exchange, although some traditional brokers offer this service as well. In that case, the investor can choose to keep their assets with their broker or in a self-custodied wallet.”
Functioning much like an ETF, an ETN (Exchange-Traded Note) offers the advantage of simplicity. “Securely managing one’s own crypto-asset portfolio is something not all investors can do, as it requires mastering private key technology,” explains Menno Martens. “Using an ETN eliminates the need to handle custody, as that responsibility is delegated to a custodian. While you don’t own the cryptocurrency directly—since an ETN is a debt security—it is fully backed by the underlying asset.” The ETN issuer does own the actual crypto assets; in the case of VanEck products, these are held in custody at Bank Frick in Liechtenstein. Furthermore, an intermediary vets the offerings, filtering out dubious projects.
What happens in the event of a crisis?
There are downsides, too; the range of available cryptocurrencies via ETNs is limited. But above all, the very concept of the ETN gives pause to Joël-Alexis Bialkiewicz, Managing Partner at the bank Delubac & Cie. “US regulations allow for the creation of ETFs where Bitcoin is the sole asset. That is not the case in Europe, where funds are subject to diversification requirements.” “When buying an ETN, investors think they are getting the same thing as a US ETF, whereas they actually hold only a debt claim: they are exposed to the issuer’s credit risk.”
This may seem like a minor detail, but the distinction would be crucial in an extreme crisis scenario. Banque Delubac, for instance, offers direct cryptocurrency holdings while keeping the assets within its own infrastructure—the digital equivalent of a bank vault where the contents remain the client’s property, even if the institution fails.
Different tax treatment
ETNs and direct holdings are also treated differently for tax purposes. “The tax advantage of an ETN lies in the fact that capital losses can be carried forward for ten years to offset future capital gains—something not possible with directly held cryptocurrencies,” explains Joël-Alexis Bialkiewicz. Conversely, direct ownership offers an advantage when it comes to capital gains.
“With ETNs, the only way to lock in a gain is to sell, which triggers a tax liability—especially since they are not eligible for the PEA [French tax-advantaged equity savings plan],” notes Joël-Alexis Bialkiewicz. “With a directly held cryptocurrency, instead of selling, you can ‘swap’ it for a euro-backed stablecoin.” This form of exchange—available on most platforms, including those used by investors who prefer self-custody—allows one to lock in gains while avoiding immediate taxation. One downside to note: tax reporting is relatively complex when the gain is realized through conversion into fiat currency (money backed by a central bank).