But you can buy your way into funds - ETFs or ETNs - that follow the rate of bitcoin. So it’s not a direct investment in bitcoin, but is instead an investment in a fund that follows bitcoin’s price movements.

See bitcoin's rate here

What are ETFs and ETNs?

ETF stands for Exchange Traded Fund, while ETN stands for Exchange Traded Note. Both types of funds try to follow the price movements within a certain market - such as the bitcoin market.

So when bitcoin sees a 20% increase in value, a successful ETF or ETN will also see a 20% increase in value.

The difference between ETFs and ETNs

An ETF owns the stocks or assets it tries to follow. When you invest in a bitcoin ETF, it’s a fund that also owns bitcoins.

An ETN doesn’t own the stocks or assets it’s trying to follow. An ETN works more like a bond of debt. If you purchase a bitcoin ETN, the issuer of the ETN will be indebted to you.

The debt is then the same value as the value increase there has been on the market that the ETN follows.

But because these are bonds of debt, where there isn’t any real ownership over actual assets, you could risk that the issuer goes bankrupt. This would mean that you could lose all the money that you’ve invested. 

But with an ETF it would rarely go this sideways, since the ETF actually owns the assets - such as bitcoins. ETFs can then choose to sell all of their bitcoins to raise capital to pay back their investors.

There are pros and cons with both types of funds, which you need to understand before you invest.

How do bitcoin ETFs and ETNs work?

When you invest in ETFs or ETNs, it in many ways works like a stock. That means that losses and gains are taxed after the applicable taxation laws for stocks. Here, your investments are either taxed as income on equity or capital income, and further after the asset liquidation principle or inventory principle.Just like you know it from the regular stocks.

You don’t have access to that when you invest directly in bitcoin as a stock. Here, special taxation laws apply, which you can read all about here .

Cryptocurrencies can rise and fall

When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.

Buy bitcoin ETFs and ETNs through Invest

Do you want to invest in bitcoin ETFs and ETNs?

You can do it all directly from your Lunar app. Log in to the app, sign up for Invest , and get started in minutes. Lunar cooperates with Saxo, and when you sign up for Invest, you’re investing through Saxo Bank directly from your Lunar app.

After you’ve signed up, you can find the different bitcoin ETFs and ETNs in the app. 

Download  Lunar now

You can also buy bitcoins through Lunar Block

ETFs and ETNs aren't the only thing you can buy via the Lunar app.

From your app, you can also sign up to Lunar Block , which is probably Denmark’s easiest platform for buying and selling bitcoin and other cryptocurrencies. 

Here, you’re not investing in funds, stocks or bonds of debt - you’re buying bitcoins directly. 

Download Lunar now - and sign up to Lunar Block

What you’re getting

• The world’s leading cryptocurrencies
• Everything in one app. Buy and sell without a wallet
• Simple trading platform without buzzwords
• A low, set trading price of 2,5% for Standard users, 1,5% for Premium users, and just 1% if you have Pro
• No pointless fees
• Best crypto prices across three of the largest exchanges
• Guide to tax reporting to Skat  [Easy tax reporting]
• Track price developments and set price alerts on currencies you follow

Get started with crypto now

Cryptocurrencies can rise and fall

When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.

We do not counsel

We do not advise on currencies and do not make recommendations for either buying or selling. We can provide factual information about the different currencies, but past price developments are not an indication of future developments.

No information from Lunar Block should therefore be considered as recommendations and all decisions are up to you alone.