BNP Paribas Launches Bitcoin, Ethereum ETNs for French Retail Clients

BNP Paribas has taken a significant step in its foray into cryptocurrency-based financial products. The French bank announced that it will offer six exchange-traded notes (ETNs) linked to Bitcoin and Ethereum to French retail clients starting March 30.

The ETNs provide indirect exposure to cryptocurrency price movements through debt instruments issued by third-party asset managers. This means that investors do not need to directly hold cryptocurrencies, but can still benefit from their price fluctuations. However, they face counterparty risk, as the performance of the ETN is tied to the issuer's ability to pay out.

BNP Paribas described the ETNs as compliant with MiFID II investor protection rules, which aim to regulate financial instruments and protect investors. The products will be available through securities accounts to individual clients, entrepreneurs, private banking clients, and Hello bank! customers in France.