BNP Paribas is set to launch six crypto-linked exchange-traded notes (ETNs) on Monday, allowing retail clients in France to gain exposure to Bitcoin and Ether through regulated financial products. These ETNs will be accessible via standard securities accounts and are designed for individual investors, entrepreneurs, private banking clients, and users of the bank’s digital platform, Hello bank!. The offerings may later expand to include wealth management clients outside of France.
Unlike direct investments in cryptocurrencies, these ETNs enable investors to follow the performance of digital assets without directly holding them, offering certain tax benefits and eliminating tracking errors. However, investors should be aware of the credit risk involved, as the investment's value could be affected if the bank fails.
This initiative is part of BNP Paribas' ongoing commitment to digital assets, which includes previous milestones such as the issuance of Slovenia’s first digital sovereign bond and a recent tokenized share class of a money market fund on the Ethereum blockchain. The bank is also a member of the Canton Network, promoting blockchain technology in institutional finance.