New: Invest in Invest in Crypto through ETPs
Invest in Crypto through Exchange-Traded Products (ETPs). Just like an ETF, you can buy it on the stock exchange through BUX.
Each Crypto ETP tracks the price of an underlying cryptocurrency. This means, for example, when the price of Bitcoin increases, the value of Bitcoin ETPs moves with it.
Why Crypto ETPs?
Simplicity
ETPs let you invest in crypto with the same ease as stocks and ETFs. No separate crypto exchanges or wallets needed.
Convenience
Keep your crypto and stock investments together in one place. Track your full portfolio in the BUX app. You can even include Crypto ETPs in your Investment Plan.
Transparency
Crypto ETPs trade on regulated exchanges and are issued by supervised financial institutions. This means you’re investing through a more controlled framework compared to many crypto platforms.
Frequently Asked Questions
What Are the Risks?
Investing in ETPs comes with risks. You’re simultaneously exposed both to the risks of the underlying asset the ETP tracks (for example, commodities or crypto) and to risks that are specific to the structure of the ETP itself. Before investing, we strongly encourage you to make sure you understand these risks. Please read Sections 4 and 5 of our Risk Disclosure, which explain the risks of both ETPs generally, and Crypto ETPs respectively in detail, like the issuer, custody, operational, and regulatory risks.
We recommend that you solely invest in products that match your knowledge and experience. If you wish to invest in this product you will be subject to a test prior to ensure that you are fit to trade in these instruments.
What are the fees?
There are no additional fees beyond normal order execution costs (view our pricing here), which are the same as for ETFs and ETCs. Similarly, each ETP has its own management fee set by the issuer, which is reflected in its performance.
Which Crypto ETPs can I buy on BUX?
Currently, you can invest in the iShares Bitcoin ETP (IBIT). iShares by BlackRock is one of the world’s most reputable fund providers. Their ETPs give you exposure to crypto through a regulated exchange.
For details on iShares Bitcoin ETP, you can read the prospectus and KID provided by the issuer.
How is a Crypto ETP different from buying crypto directly?
When you buy a Crypto ETP, you’re investing in a product that tracks the price of a cryptocurrency — not the cryptocurrency itself. You don’t need a wallet, and you can trade it through your regular BUX account on a regulated exchange.
Do I actually own the cryptocurrency?
No. With a Crypto ETP, you don’t own the underlying cryptocurrency. Instead, you own shares of an exchange-traded product that reflects its price.
Investing in Crypto ETPs involves a high level of risk. The value of the underlying crypto-assets is extremely volatile and you may lose all of your invested capital. Crypto ETPs depend on the liquidity and functioning of the underlying market and may be difficult to sell at times. Crypto-assets are not legal tender and are not backed by any government or central bank. Additional risks include issuer, custody, operational, and regulatory risks.