ETN (exchange-traded note)
An exchange-traded debt security that tracks an underlying such as a cryptocurrency. It carries issuer risk.
In short
As of 8 October 2026An ETN (exchange-traded note) is an exchange-traded debt security that tracks an underlying such as bitcoin or a commodity. Unlike an ETF, it is not segregated assets: if the issuer goes bankrupt, a total loss is possible in the worst case. Market risk is often high too. Gains are generally subject to capital gains tax.
An ETN tracks the performance of an underlying, for example bitcoin or a commodity index. Legally, like a bond, it is a debt security: you have a claim against the issuer, but no segregated assets as with an ETF.
If the issuer goes bankrupt, you could lose everything in the worst case, even though some ETNs are collateralised. On top comes market risk: crypto ETNs can fall by double digits in a single day. Gains are generally subject to capital gains tax. How crypto held directly is taxed is covered in crypto holding period.
Example: a bitcoin ETN falls 30 % when bitcoin falls 30 %. Before buying, check how it is collateralised and be sceptical of marketing promises, see our scam check.
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Sources
As of 8 October 2026 · Educational content, not investment or tax advice.