Over the past two decades, Exchange Traded Products (ETPs) have become an integral part of modern capital markets. As a broad category encompassing Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), and similar instruments, ETPs provide investors with transparent, cost-efficient, and easily tradable access to a wide range of markets, sectors, and strategies. Today, they manage trillions of dollars globally and have become a central tool for both retail and institutional investors. The European ETF industry surpassed $3 trillion in AuM in September 2025 – up from $1 trillion just a decade ago. Each new trillion was reached faster than the last, underscoring accelerating adoption and the compounding momentum of ETF growth.

At the same time, a new asset class has emerged: cryptocurrencies. What began with Bitcoin as an experimental idea has grown into a global market worth hundreds of billions of dollars. Ethereum and other blockchain-based projects have extended the scope far beyond “digital money,” introducing platforms for decentralized finance and the tokenization of assets.

The combination of these two developments - the rise of ETPs as a dominant investment vehicle and the emergence of cryptocurrencies as a new asset class - has led to a new subcategory: crypto ETPs. These instruments bridge traditional finance and digital innovation, enabling investors to gain regulated exchange-traded exposure to cryptocurrencies without directly managing wallets or private keys.
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Fundamentals: ETPs, ETFs and ETNs Explained

Exchange Traded Products (ETPs) form the overarching category of exchange-traded securities that track the performance of an underlying asset or index. They all share three features: they are listed on regulated exchanges, they allow intraday trading like a stock, and they provide transparent exposure to an asset without requiring investors to hold it directly.
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Within this category, there are several distinct structures:

• Exchange Traded Funds (ETFs)
  An ETF is an investment fund that holds a portfolio of securities - such as stocks, bonds, or commodities - on behalf of its investors. ETFs issue fund shares that are traded on an exchange. The defining feature of an ETF is that it represents ownership in a pool of assets, usually following an index. For example, the MSCI World ETF holds hundreds of large and mid-cap stocks from developed markets, giving investors broad diversification in a single instrument. Because of this fund structure, ETFs are considered relatively low-risk, transparent, and cost-efficient.
• Exchange Traded Notes (ETNs)
  Unlike ETFs, ETNs are not funds. They are unsecured debt obligations issued by a bank or financial institution. ETNs promise to pay the return of a specified asset or index, minus fees. This structure makes them flexible - for example, providing access to niche or hard-to-replicate markets - but they carry credit risk: if the issuer defaults, investors may lose their investment, regardless of how the underlying asset performed.
• Exchange Traded Notes (ETNs)
  Unlike ETFs, ETNs are not funds. They are unsecured debt obligations issued by a bank or financial institution. ETNs promise to pay the return of a specified asset or index, minus fees. This structure makes them flexible - for example, providing access to niche or hard-to-replicate markets - but they carry credit risk: if the issuer defaults, investors may lose their investment, regardless of how the underlying asset performed.
• Exchange Traded Commodities (ETCs)
  ETCs are designed specifically to track commodities such as gold, silver, or oil. Many ETCs are physically backed, meaning they hold the commodity in storage (e.g., gold bars in a vault). Others may be swap-based, using derivatives to replicate commodity performance. The key difference to ETFs: ETCs are usually debt instruments, not funds, and are often structured to comply with regulations that restrict funds from holding a single commodity.
• Crypto ETPs
  A more recent extension of the category are products tracking cryptocurrencies such as Bitcoin or Ethereum. They can be physically backed (the issuer holds the coins in custody) or synthetically replicated via derivatives. Crypto ETPs embed digital assets into the traditional securities infrastructure, giving investors regulated and exchange-traded access without the need to manage wallets or private keys.
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Market Trends and Growth

The ETF market began in the 1990s as a niche tool for institutions but has since grown into a multi-trillion-dollar industry. ETFs have reshaped portfolio construction with transparent, low-cost access to diversified strategies. ETPs now extend across virtually every asset class. Fixed Income ETFs have grown from just $100bn in 2015 to more than $600bn today – over a six-times increase – cementing their role as a core portfolio pillar and demonstrating how quickly new segments of the ETF ecosystem can scale.

Crypto ETPs emerged later, first in Europe, where Switzerland and Germany listed Bitcoin and Ethereum products years before U.S. approval. A turning point came in 2024, when U.S. regulators finally allowed spot Bitcoin ETFs. The result was immediate: tens of billions of dollars flowed into these products, demonstrating strong institutional demand. Today, investors can choose from a wide range of offerings, from single-asset Bitcoin and Ethereum products to thematic and multi-asset solutions. In 2025, cryptocurrency ETFs experienced a major rebound, with Bitcoin leading inflows while Binance-based products saw the heaviest redemptions. Overall flows surged nearly 5x compared to 2024, highlighting renewed investor confidence and growing institutional adoption.

Regional differences remain. Europe was an early mover with broad product diversity and strict regulation. The U.S. entered late but quickly became the largest market after 2024 approvals. Asia remains fragmented: Hong Kong has taken steps toward a crypto-friendly market, while China maintains prohibitions and Singapore enforces strict oversight.

Demand comes from both retail and institutional investors: retail clients value the simplicity of brokerage-based access, while institutions depend on the regulated framework. Since the approval of U.S. spot ETFs, institutional flows have outpaced retail, underscoring the rapid institutionalization of the asset class.
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Crypto in Structured Products

For cryptocurrencies to be included in structured products, a strong infrastructure is essential. Blockchains ensure transparent and immutable ownership records. Professional custodians provide secure storage of private keys, often with multi-signature protections and insurance. Trading venues have matured, with liquid and regulated markets for Bitcoin and Ethereum, allowing accurate tracking and arbitrage.

For investors, crypto ETPs offer easy access, diversification benefits, liquidity, and the trust that comes with regulation. Risks remain: high volatility, differing regulations worldwide, higher costs compared to traditional ETFs, and residual technological risks in custody or trading.

Examples highlight this evolution. Bitcoin ETFs became the fastest-growing funds in U.S. history after approval. Ethereum products have long existed in Europe and now increasingly include staking rewards. Multi-asset crypto ETPs offer baskets of currencies weighted by market capitalization or thematic focus. Together, these products reflect the diversity of the digital asset ecosystem within a familiar securities framework.
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Impact on Financial Markets

The impact on financial markets is already visible. Capital flowing into crypto ETPs increases liquidity and strengthens price discovery. Transparency rises as ETF flows and volumes provide market signals. Most importantly, ETPs have opened the door for institutions. Pension funds and insurers, previously excluded from holding digital assets, can now allocate through regulated securities. This legitimizes crypto as an asset class.

The impact of crypto reaches across different asset classes. In equities, listed crypto companies such as exchanges and miners can benefit from higher demand. Bonds are less directly affected but may feel the influence through broader macro factors like inflation expectations. Commodities offer a natural comparison: Bitcoin, similar to gold, is scarce and increasingly viewed as a store of value. For portfolios, cryptocurrencies can add diversification because they show low correlation with equities and bonds. At the same time, their high volatility creates both risks and opportunities for investment strategies.