The major difference between an ETN and an ETF is that ETF shareholder owns a portion of the fund’s underlying assets, while ETN investors own debt security.

The Jacobi Bitcoin ETF is a centrally cleared crypto-backed financial instrument with custody supported by Fidelity Digital Assets, a major shift from the usual exchange-traded notes (ETNs). In Europe, all crypto-backed traditional financial instruments were structured as ETNs, rather than funds.

The major difference between an ETN and an ETF is that the ETF shareholder owns a portion of the fund’s underlying assets, while ETN investors own debt security. ETFs, unlike ETNs, cannot be leveraged or use derivatives, which could otherwise lead to market manipulation risks.