Crypto ETN in securities account: the pitfalls to be aware of

Securities account yes, PEA no, what the arrival of crypto ETNs changes

These products are only accessible via a securities account ordinary, not via a PEA or a PEA-PME. Current European regulations exclude crypto ETNs from the scope of products eligible for stock savings plans. To integrate these assets into a PEA, the investor must go through shares of listed companies in the sector (miners, exchange platforms, infrastructure providers), not through trackers indexed directly to the price of Bitcoin or Ethereum.

Clotilde Sall, Trading Room Expert at Bourse Direct, indicates a key point. “We must not think that we are buying crypto live. You will never hold cryptocurrency in your wallet, in your securities account.” The ETN is a debt security issued by a financial institution, which undertakes to replicate the performance of the underlying. Concrete consequence, in the event of default of the issuer, the counterparty risk weighs on the investor.

Finally, the taxation attached is noticeably simpler. Adrien Bonnaud, Securities Lending/Borrowing Analyst at Bourse Direct, summarizes the administrative advantage. “The tax declaration is the same as for shares at the end of the year. Whereas with an external cryptocurrency wallet, there are a lot more declarations to make. In a wealth strategy, it is simpler today to buy a crypto ETN than to buy cryptocurrency directly.”. The gains are treated as traditional capital gains, subject to the PFU (flat tax) 2026, at 31.4%.

Four pitfalls to know before you click

There volatility of the underlying, firstly, remains intact. Buying a Bitcoin ETN does not smooth the Bitcoin curve. “The underlying of your product is cryptocurrency. It remains something volatile”alerts Clotilde Sall. THE quotation time difference then, implies that “your ETN only trades during trading hours, while your crypto trades 24 hours a day, 7 days a week.” A sudden movement in Bitcoin on a Sunday evening or in the middle of the night is only reflected in the ETN at the next market opening, creating a sometimes brutal catch-up effect.

Furthermore the management fees are specific to each ETNs. Each product applies annual management fees variables depending on the issuer, detailed in the key information document (KID). “The management costs and risks of the issuer must be taken into account.recalls Adrien Bonnaud. Fourth trap, the issuer risk itself, the ETN being a debt security whose solidity depends on the house that issues it. On the costs of brokeragea scale per level is applicable at Bourse Direct: 0.99 euros up to 500 euros, 1.90 euros between 500 and 1,000 euros, 2.90 euros between 1,000 and 2,000 euros, 3.80 euros between 2,000 and 4,400 euros, then 0.09% of the amount beyond. Please note, the 4 VanEck ETNs benefit from a commercial offer with brokerage fees reimbursed on all purchase orders above 1,000 euros.

For which profileinvestor are these products relevant? The first returns from Bourse Direct converge towards a broad target affecting both historical customers between 35 and 60 years old as well as young new investors, on a logic oflong-term allocation rather than active trading. THE trade average observed is 2,300 euros per order on these products, which confirms the logic of asset diversification rather than impulsive purchase. Accessibility via an existing securities account, the exemption from wallets and private keys, and the familiar taxation of shares explain the appeal for investors already comfortable with the classic stock market. Conversely, for those who want to trade 24 hours a day or actually hold crypto, the direct wallet remains essential.

Crypto ETNs are complex financial instruments with a risk of capital loss. Their underlying asset (cryptocurrencies) is by nature very volatile. Before any investment, read the regulatory documentation (key information document) and ensure that you have understood how the product works, the associated fees and the issuer and market risks.