German Bank ING Deutschland Opens Retail Access to Crypto-Linked ETNs
ING Deutschland has opened retail entry to cryptocurrency-linked exchange-traded notes (ETNs), permitting clients to acquire publicity to Bitcoin, Ethereum and Solana by way of its securities platform.
Key Takeaways:
- ING Deutschland now provides retail traders bank-integrated ETNs for Bitcoin, Ethereum and Solana.
- The merchandise take away the necessity for wallets or personal keys by becoming into present brokerage accounts.
- ING warned the ETNs carry high dangers regardless of tax alignment and controlled buying and selling venues.
The merchandise are bodily backed ETNs issued by established suppliers together with 21Shares, Bitwise and VanEck.
The notes monitor the efficiency of particular person cryptocurrencies and are traded on regulated exchanges through ING’s Direct Depot service, integrating crypto publicity into a conventional brokerage setup.
ING Aims to Lower Barriers With Bank-Integrated Crypto ETNs
ING stated the providing is designed to cut back friction for retail traders by counting on acquainted banking infrastructure.
Customers don’t want to handle third-party wallets, personal keys or separate crypto accounts, because the ETNs are held alongside different securities of their present portfolios.
“This creates one other significantly low-threshold entry to crypto investments through exchange-traded merchandise,” stated Martijn Rozemuller, chief government of VanEck Europe, in a translated statement.
He added that many traders desire crypto publicity that matches inside present custody and reporting constructions whereas providing clear prices.
The financial institution additionally famous that the ETNs fall below Germany’s tax framework for crypto investments.
Under present guidelines, capital positive aspects could also be exempt from tax if positions are held for multiple 12 months, aligning the merchandise with the remedy of direct cryptocurrency holdings.
At the identical time, ING burdened that the devices carry substantial dangers. In disclosures accompanying the launch, the financial institution cited excessive value volatility, potential whole loss within the occasion of issuer insolvency, liquidity constraints, market manipulation and regulatory uncertainty.
On an academic web page, ING described cryptocurrencies as speculative belongings whose costs are closely influenced by market psychology.
The transfer marks one other step in ING’s gradual growth into digital belongings. The Dutch banking group, whose historical past dates again to the 18th century, has been exploring blockchain-based finance throughout Europe.
In September, ING joined a consortium of European banks engaged on a euro-denominated stablecoin, aiming to create a trusted fee normal for the area.
By bringing crypto-linked ETNs to retail clients, ING joins a rising variety of European banks providing regulated pathways into digital belongings with out direct token possession.
ING Joins Bank Consortium Exploring Euro-Denominated Stablecoin Under MiCA
As reported, ING is preparing to launch a euro-denominated stablecoin as a part of a consortium with different banks.
The challenge remains to be at an early stage, with a number of taking part establishments awaiting board approvals and regulatory clearance to set up a joint issuing entity. ING declined to touch upon the plans.
The initiative comes because the European Union’s Markets in Crypto-Assets Regulation (MiCA) reshapes the area’s stablecoin panorama by setting licensing necessities, reserve guidelines and oversight requirements.
MiCA has elevated curiosity in euro-backed digital currencies by offering a clearer framework for banks to situation compliant merchandise.
ING wouldn’t be the primary European financial institution to enter the house. Société Générale, through its SG FORGE unit, has already launched a euro-backed stablecoin, whereas analysts observe MiCA has strengthened regulated choices akin to Circle’s EURC.
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