ETFs on cryptocurrencies not available in Germany - alternatives for investors.

ETFs on cryptocurrencies not available in Germany - alternatives for investors.

According to a report from www.t-online.de, cryptocurrencies are becoming increasingly popular as an investment idea. One way to invest in cryptocurrencies is to buy a so-called ETF. This is a financial product that uses cryptocurrencies as an underlying asset and is traded on the stock exchange. In contrast to buying cryptocurrencies directly, you don't need your own wallet, you just open a depot for the ETF shares.

However, the article mentions that there are no cryptocurrency ETFs in Germany yet, as European UCITS regulations do not allow an ETF to contain only a single asset. Since there are currently no indices on cryptocurrencies and the ETFs traded abroad only contain a single cryptocurrency, they are not allowed to be traded in Germany. It is therefore unlikely that there will be ETFs on cryptocurrencies in Germany in the future.

However, as an alternative, investors can invest in exchange-traded certificates called ETNs. These ETNs are debt securities and are not considered special assets. This means that if the fund company goes bankrupt, a total loss is possible. However, there are also ETNs that represent a basket of several cryptocurrencies and are physically collateralized.

However, investing in ETNs on cryptocurrencies is always risky as they involve both the general risk of ETNs and the high volatility of cryptocurrencies. In particular, ETNs that only contain a single cryptocurrency can result in significant losses.

This information shows that although cryptocurrency ETFs are not available in Germany, there are still ways to invest in cryptocurrencies. However, investors should clearly understand the risks and peculiarities of cryptocurrency ETNs before making an investment decision.

Source: According to a report from www.t-online.de