What is a crypto ETP, and how is it different from an ETF?

A crypto ETP is an investment product that tracks the price of a cryptocurrency, or a basket of them, and trades on a stock exchange like a share. The term covers several legal structures. An ETF (exchange-traded fund) is one of them, but many crypto products called ETPs are not funds at all.

What is the difference between a crypto ETP and an ETF?

The US Securities and Exchange Commission (SEC) uses ETP as the broad term for products listed on securities exchanges, including ETFs and exchange-traded commodity trusts. A spot ETP holds the crypto itself. A futures ETP holds futures contracts instead.

Spot bitcoin and ether products in the US are set up as commodity trusts. They are not registered under the Investment Company Act of 1940, the law that governs most ETFs and mutual funds, so some of its protections do not apply. The SEC notes that they may still use ETF in their names or be called ETFs. The guide to spot bitcoin ETFs explains how they work.

How do bitcoin ETPs work in Europe?

European rules for funds, known as UCITS, require diversification, so a fund holding a single coin does not fit them. Issuers instead list exchange-traded notes, or ETNs. These are debt securities: the holder owns the issuer's promise to pay, not the coins.

Physically backed ETNs hold the crypto as collateral with a custodian, often in a separate legal vehicle overseen by a trustee. That collateral is meant to protect holders if the issuer fails, but justETF warns there is no guarantee it will cover the full value.

The EU's MiCA law covers crypto assets that are not already regulated by existing financial services law. An ETN is a security, so it is sold under existing securities rules rather than MiCA.

Can UK investors buy crypto ETNs?

Yes, since October 8, 2025. The Financial Conduct Authority (FCA) had banned the sale of crypto ETNs and crypto derivatives to retail customers in January 2021. It let professional investors use a UK-listed segment from March 2024, then lifted the retail ban on ETNs.

Retail investors can buy only crypto ETNs traded on a UK exchange recognised by the FCA. Promotion rules and the FCA's Consumer Duty apply, but the products are not covered by the Financial Services Compensation Scheme. The ban on crypto derivatives for retail customers remains.

Are there XRP and Ethereum ETPs?

Yes. Spot ether ETPs trade in the US, and the first ETNs opened to UK retail investors in October 2025 tracked bitcoin or ether. On September 17, 2025, the SEC approved generic listing standards that let exchanges list qualifying spot crypto ETPs without a separate rule filing for each one. The first US product holding spot XRP began trading on Nasdaq on November 13, 2025. The guide to Ethereum, Solana and XRP ETFs covers these funds.

Rules differ by country and change often. Check the regulator or a qualified professional for your own situation.