What are the benefits of investing in cryptocurrency ETPs and ETNs?

ING Germany Boosts Crypto Options: New ETPs and ETNs with Bitwise and VanEck

Introduction: Traditional Finance and Crypto Converge in Germany

ING Germany is expanding its crypto footprint by offering new crypto-linked Exchange Traded Products (ETPs) and Exchange Traded Notes (ETNs) in partnership with Bitwise and VanEck. This move signals accelerated convergence between traditional finance (TradFi) and digital assets in one of Europe’s most important financial markets.

For crypto investors, traders, and builders in web3, the development matters for three reasons:

• It widens regulated, exchange-traded access to crypto exposure in the EU.
• It leverages leading crypto asset managers Bitwise and VanEck.
• It reflects rising institutional comfort with Bitcoin, Ethereum, and broader crypto themes.

Below is an in-depth look at what this means, how these products work, and why Germany is emerging as a critical hub for regulated crypto investment.

ING Germany’s Crypto Expansion: Context and Significance

ING’s Position in the European Crypto Landscape

ING is one of Europe’s largest banks, with a strong presence in retail and corporate banking. While the Dutch parent company has long explored blockchain and digital asset infrastructure (including custody and tokenization pilots), ING Germany’s new product lineup shows a more public-facing step into crypto investment access.

For German clients, this generally means:

• A broader range of crypto ETPs/ETNs available via regular brokerage accounts.
• Ability to trade crypto-linked products on regulated exchanges like Xetra.
• Integration with existing banking and investment interfaces, improving accessibility.

Why Germany Matters for Crypto ETPs and ETNs

Germany is a leading jurisdiction for crypto ETPs/ETNs in Europe, thanks to:

• A mature exchange ecosystem (Deutsche Börse / Xetra).
• Crypto-friendly but strict regulation via BaFin.
• Strong institutional and retail appetite for regulated crypto exposure.

Many of the earliest and largest spot crypto ETPs/ETNs listed in Europe have launched on German exchanges, setting benchmarks for liquidity and transparency.

Understanding Crypto ETPs and ETNs: Structure, Risk, and Use Cases

What Are Crypto ETPs and ETNs?

Crypto ETPs and ETNs are exchange-traded securities offering exposure to digital assets without requiring the investor to manage wallets, private keys, or on-chain execution.

Key differences:

Why Crypto Investors Use ETPs and ETNs

Crypto-native users might prefer self-custody, but ETPs/ETNs solve practical needs for many market participants:

1. Regulatory comfort
• Held in regulated securities accounts.
• Clear tax and reporting treatment in many jurisdictions.

2. Operational simplicity
• No wallets, seed phrases, or gas fees.
• Integrated into existing portfolio management systems.

3. Institutional compatibility
• Fit within mandates that disallow direct token holding.
• Can be used for asset allocation, risk management, and benchmarking.

4. Access to thematic or diversified baskets
• DeFi indexes, layer-1 baskets, or sector strategies via a single ticker.

Bitwise and VanEck: Crypto Asset Managers Behind the Products

Bitwise: Index-Driven and Thematic Crypto Strategies

Bitwise Asset Management, based in the U.S., is known for:

• Crypto index funds (e.g., large-cap crypto indexes).
• Sector-focused strategies (DeFi, NFTs, infrastructure).
• Research-heavy approach to token selection and on-chain metrics.

For European ETP/ETN markets and banks like ING Germany, Bitwise brings:

• Curated exposure to diversified crypto baskets.
• Transparent methodology and regular index rebalancing.
• Products engineered for regulatory and institutional standards.

Possible product themes accessible via Bitwise-linked ETPs/ETNs include:

• Large-cap crypto basket (BTC, ETH, and top majors).
• DeFi protocols index (DEXs, lending, derivatives).
• Web3 and infrastructure tokens (L1s, L2s, middleware).

VanEck: Early Institutional Backer of Bitcoin and Ethereum

VanEck is one of the earliest traditional asset managers to embrace crypto, with a robust lineup of European crypto ETNs already trading on Xetra and other exchanges.

VanEck’s crypto offering generally covers:

• Single-asset ETNs:
• Bitcoin (spot-backed)
• Ethereum (spot-backed)
• Other majors like Solana, Polygon, etc. (subject to listing)
• Thematic and multi-asset exposures in selected jurisdictions.
• Competitive fees and institutional-grade custody arrangements.

In Germany, VanEck has been a key player in:

• Listing some of the first Bitcoin and Ethereum spot ETNs.
• Building secondary market liquidity and market-maker relationships.
• Educating regulators and investors around crypto’s risk/return profile.

How ING Germany’s New Crypto ETPs/ETNs Benefit Investors

Expanded Product Shelf and Access Routes

By integrating Bitwise and VanEck ETPs/ETNs, ING Germany clients can expect:

• Broader asset coverage
• Beyond just Bitcoin and Ethereum to include diversified baskets and thematic plays.
• Portfolio integration
• Crypto exposure viewable alongside equities, bonds, and ETFs.
• Familiar trading workflow
• Buy/sell using standard brokerage tools, with ISINs, tickers, and order types.

Risk and Compliance Considerations

Access via a regulated bank does not remove underlying market risk. Crypto ETN/ETP investors must consider:

• Volatility of the underlying tokens.
• Custody and security arrangements (cold storage, multi-sig, insurance).
• Issuer risk (especially for ETNs, which are debt instruments).
• Regulatory changes in the EU (e.g., MiCA implementation, tax clarifications).

A simple risk lens for these products:

Strategic Takeaways for Crypto and Web3 Participants

For Retail and High-Net-Worth Investors

• On-ramp to crypto without managing private keys or learning DeFi tools.
• Ability to blend crypto exposure with traditional assets in one account.
• Easier tax and compliance handling via bank statements and standardized reporting.

For Crypto-Native Users and Builders

• Confirms growing institutional demand for regulated crypto exposure.
• Supports liquidity and price discovery for major assets and sectors.
• Creates a bridge between on-chain innovation and off-chain capital.

For Institutions and Corporate Treasuries

• Offers a compliance-friendly instrument type for crypto allocation.
• Streamlines integration into existing risk, accounting, and custody frameworks.
• Can be used as a stepping stone before exploring direct token holdings, staking, or on-chain participation.

Conclusion: ING Germany’s Move Signals a Maturing Crypto Market

ING Germany’s collaboration with Bitwise and VanEck to expand its offering of crypto ETPs and ETNs is a strong signal that crypto is becoming embedded in mainstream European finance.

For the crypto and blockchain ecosystem, this development means:

• Greater legitimacy and institutionalization of digital assets.
• More robust and diversified investment rails into Bitcoin, Ethereum, and beyond.
• A reinforcing loop between regulation, infrastructure, and innovation in web3.

As MiCA and other EU frameworks roll out across 2024-2025, expect more banks and asset managers to follow ING Germany’s lead. For builders and investors alike, understanding how ETPs and ETNs operate-and how they connect TradFi with on-chain economies-will be increasingly critical to navigating the next phase of crypto adoption.