Crypto ETPs: what they are and what you own
A crypto ETP is an exchange-traded product that tracks a crypto asset's price. You buy it in a brokerage account and do not own the underlying coin.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Crypto ETPs track a crypto asset's price.
- They trade in brokerage accounts, not crypto exchanges.
- You do not own the coin or hold private keys.
Exchange-traded products include ETFs, ETNs and other structures. Crypto versions give price exposure without a crypto exchange account.
What types of crypto ETPs exist?
Crypto ETPs come in several structures. The SEC approved the first US spot bitcoin ETFs in January 2024.
How do you buy a crypto ETP?
You buy shares through a brokerage account, like a stock. You do not need a crypto exchange or a wallet.
How does the price track crypto?
A crypto ETP aims to follow the price of the asset it tracks, but the two can drift apart. Fees and demand can push the share price above or below the assets behind it.
What are the main risks and limits?
Crypto ETPs usually trade only during stock market hours, so you cannot react to overnight or weekend moves. A share's price can be above or below the assets behind it, and an ETN carries the issuer's credit risk.
How is it different from owning crypto?
A US crypto ETP is a security the SEC regulates. You do not own the coin and hold no private keys.
Frequently asked questions
No. An ETF is one kind of ETP. An ETN is a different kind.
No. You own shares or a note, not the coin.
Usually no. They trade during stock market hours. Some brokers offer extended hours, not weekends.
Selling ETF shares for a gain is generally a capital gain. ETN payments can be ordinary income.
