Unlike an ETF, which is a fund that holds assets, an ETN is an unsecured debt security issued by a bank. It is typically linked to a market index or other benchmark. An ETN promises to pay out at maturity the full value of the index, minus management fees.

Bitcoin bulls note this will lead to increased institutional investment into bitcoin and other cryptocurrencies. They say this will, in turn, impact the price positively as more serious money floods into the market.