Architectural Concept Design Collection

  • CONTACT
  • MARKETCAP
  • BLOG
Finances Investing and Crypto News
  • BOOKMARKS
  • Finance
  • Investment
  • Crypto
    • Bitcoin
    • Blockchain
    • Ethereum
    • Forex
    • Tether
  • Market
    • Binance
    • Business
    • Investor
    • Money
    • Trading
  • News
    • Mining
    • NFT
    • Stocks
Reading: The quiet rise of exchange-traded notes
Share
  • bitcoinBitcoin(BTC)$104,692.05
  • ethereumEthereum(ETH)$2,526.20
  • tetherTether USDt(USDT)$1.00
  • rippleXRP(XRP)$2.17
  • binancecoinBNB(BNB)$656.91
  • solanaSolana(SOL)$155.75
  • usd-coinUSDC(USDC)$1.00
  • dogecoinDogecoin(DOGE)$0.192080
  • tronTRON(TRX)$0.267837
  • cardanoCardano(ADA)$0.68
Finances Investing and Crypto NewsFinances Investing and Crypto News
0
Font ResizerAa
  • Finance
  • Investment
  • Crypto
  • Market
  • News
Search
  • Finance
  • Investment
  • Crypto
    • Bitcoin
    • Blockchain
    • Ethereum
    • Forex
    • Tether
  • Market
    • Binance
    • Business
    • Investor
    • Money
    • Trading
  • News
    • Mining
    • NFT
    • Stocks
Have an existing account? Sign In
Follow US
© Foxiz News Network. Ruby Design Company. All Rights Reserved.
Finances Investing and Crypto News > Blog > Crypto > Bitcoin > The quiet rise of exchange-traded notes
BitcoinBlockchainEthereumNews

The quiet rise of exchange-traded notes

admin
Last updated: 17/05/2025 4:03 Chiều
admin
Published 17/05/2025
Share


Contents
Rising expectations in a 24/7 marketThe role of regulation: MiCA changes the gameA tale of two continentsCriticism persists, but so does demand

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

Just three years ago, spot Bitcoin ETFs were hailed as crypto’s final gateway into mainstream finance. And for a brief moment, they looked like they would truly revolutionise investing. After a flurry of approvals and billions of institutional dollars flowing in, many on Wall Street assumed the ETF era was upon us.

ETFs gave institutions a straightforward method of gaining exposure to Bitcoin (BTC) and Ethereum (ETH) without grappling with private keys and custody complications. But they have a fundamental limitation in that they typically track price alone. When crypto’s famously volatile market moves sideways, ETF returns can stall as well. That makes spot ETFs appear increasingly like blunt instruments in a market that demands innovation and sophistication.

Rising expectations in a 24/7 market

The reality is that as institutional adoption grows, so too do expectations. In capital markets, an investment that cannot generate returns beyond price appreciation has an inherent flaw. That flaw is magnified in the fast-changing 24/7 world of crypto. Investors who were once content with passive exposure are demanding more. In traditional markets, exchange-traded products can be used to access dividends, interest-bearing instruments, or structured investment vehicles. Why should crypto investment be limited to simple price speculation?

Exchange-traded notes answer this demand by offering structured exposure to multiple crypto assets, including staking-based tokens, DeFi portfolios, and multi-asset investment baskets. These products are flourishing in Europe, where offerings have rapidly expanded beyond Bitcoin and Ethereum to include products tracking staking rewards, diversified crypto portfolios, and structured derivatives.

The role of regulation: MiCA changes the game

Momentum in Europe isn’t accidental—the continent’s UCITS regulation strongly limits ETF activities, creating a natural opening for ETCs and ETNs to lead the way as more adaptable investment vehicles—a factor being accelerated by the European Union’s Markets in Crypto-Assets Regulation (MiCA), which came into full force at the end of last year. MiCA provides a unified legal framework for crypto assets across EU member states, mandating clearer standards for the issuance, operation, and marketing of digital assets.

Crucially, MiCA addresses the primary concern about ETNs: credit risk. As debt securities, ETNs traditionally hinged on the issuer’s creditworthiness. Under MiCA, however, issuers must satisfy higher capital requirements and demonstrate operational transparency, reassuring protections for institutional money. This evolution reduces counterparty risk, mirroring regulatory frameworks already familiar to bond investors.

Combined with the latest ETP performance data, the conclusion is difficult to miss: a growing number of institutional players appear comfortable embracing yield-bearing ETN structures in a well-regulated environment.

A tale of two continents

But while Europe strides ahead with MiCA, the United States remains hesitant. The SEC’s cautious approach has limited the availability of more versatile crypto investment products like ETNs. This regulatory lag puts U.S. investors at a disadvantage, restricting their ability to fully capitalize on the opportunities within the crypto market.

Such divergence could be the beginning of a structural shift, where investors are no longer solely seeking exposure to Bitcoin’s next peak. These investors want vehicles that capture staking rewards or earn fees from decentralised finance protocols. A static ETF simply cannot offer these perks, giving a strong advantage to ETNs with their built-in potential for extra returns.

That does not mean ETFs will vanish. They retain considerable brand power, particularly in North America, where name recognition and a simpler regulatory environment have made them top-of-mind for conservative players. Yet as conventional markets continue to hunger for yield, institutional capital is gradually shifting toward more dynamic structures—momentum which only stands to accelerate if the Trump regime chooses to ease restrictions or if Europe’s support for ETNs grows more comprehensive under MiCA.

Criticism persists, but so does demand

Critics who remain tethered to the safety of ETFs argue that staking tokens and newer DeFi assets are too risky or illiquid. They point to credit risk and smart contract exploits in decentralized platforms. Such skepticism can be healthy, but it fails to account for the real appetite among yield-seeking investors. The accelerating flows into ETNs suggest many are prepared to navigate these complexities in pursuit of stable returns, especially if the alternative is sitting idle through cyclical crypto doldrums.

To an extent, ETFs were instrumental in legitimizing crypto among pension funds and large asset managers. Yet that very success opened the door to other structures that could build on rather than track crypto’s underlying innovation. In doing so, ETNs are carving out a unique space—one that captures the dynamism of digital assets more effectively than the plain-vanilla ETF.

In essence, the crypto market’s next growth phase hinges on products that deliver more than blind bets on price. Institutions want diversification and yield. Regulators want transparency. ETNs, though not without pitfalls, appear to strike a better balance between these demands. As Europe forges ahead with regulatory clarity and as yield-hungry capital circles the globe, ETNs look set to eclipse ETFs as the default instrument for serious crypto allocation.

For those content with a passive approach, ETFs may continue to suffice. But for the world’s largest funds, complacency is seldom a strategy. With the promise of income in both bull and bear markets, ETNs beckon as the savvier bet to properly harness the potential of crypto. If the near future of digital finance is about innovative ways to generate returns, ETNs are no mere sideshow. 

And they could yet be the main event.

Bundeep Singh Rangar

Bundeep Singh Rangar

Bundeep Singh Rangar, CEO of Fineqia, is a recognized figure and investor in digital industries. Fineqia International Inc. (publicly listed in Canada under CSE: FNQ) is a digital asset business that builds and targets investments in early and growth-stage technology companies. He’s a thought leader in blockchain technologies and has spoken at influential events, including Paris Blockchain Week, Insurance 2025 in London, the South Summit in Madrid, the FinTech & InsurTech Digital Congress in Warsaw, and Rakuten’s Technology Conference in Tokyo. In 2015, Bundeep founded PremFina, a London-based insurtech firm that disrupted the UK insurance industry and challenged a 35-year-old $10 billion market duopoly. He’s raised venture capital from prominent entities like Rakuten, Canada’s Thomson family, and Silicon Valley investor Tim Draper and secured private equity investment from US financial institutions. Bundeep’s personal investments span internationally, including blockchain companies like Wave Financial, IDEO CoLab., Nivaura, and Phunware Inc.

You Might Also Like

Starknet launches Asset Runes to bring tokens to Bitcoin

$564M in fresh funding, but no home for it? — India’s web3 market is running on pure chaos

NFT sales rise 10.6% to $115m, Doodles rally 500%

Cetus hack post-mortem reveals overflow bug behind $223m exploit

What is a crypto presale? Ultimate guide to crypto presales

TAGGED:exchangetradednotesquietrise

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Email Copy Link Print
Previous Article Dow jumps 330 points as S&P 500 logs strong weekly gain 
Next Article Pi Network price crashes as centralization risks persist
Leave a Comment

Để lại một bình luận Hủy

Email của bạn sẽ không được hiển thị công khai. Các trường bắt buộc được đánh dấu *

Follow US

Find US on Socials
FacebookLike
- Advertisement -
Ad image
Popular News
$161m floods startups as prices sway
Emergency Funds: Importance and How to Build One
Debt Management: Strategies to Pay Off Debt Efficiently
Riot Platforms unloads 475 BTC in its biggest single-month Bitcoin sale to date
Revolut partners with Lightspark to add Bitcoin Lightning for UK and EEA users
- Advertisement -
Ad image

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Youtube Telegram Linkedin
Finances Investing and Crypto News

FICN.net brings you the latest in finance, investment, and crypto. Stay informed with expert insights, market analysis, and beginner guides. Whether you're new or experienced, FICN.net helps you explore opportunities, manage risks, and make smarter financial decisions in a fast-changing world.

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

Ad image
© 2024 Finance, Investment, and Crypto News. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?