Cryptocurrency Q&A
What are the disadvantages of ETN?
What are the disadvantages of ETN?
Leonardo
Thu Oct 24 2024
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6 answers
1923
I want to know the downsides or negative aspects of ETN. I'm interested in understanding the potential risks, limitations, or any other disadvantages associated with ETN.
6 answers
Carolina
Sat Oct 26 2024
This disadvantage lies in the credit risk associated with ETNs.
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DigitalDuke
Sat Oct 26 2024
ETNs are essentially promises made by the issuing bank.
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CryptoVanguard
Sat Oct 26 2024
Unlike other financial instruments, ETNs are not backed by underlying securities.
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emma_carter_doctor
Sat Oct 26 2024
As a result, the financial stability of the issuing bank plays a crucial role in determining the ETN's trading value.
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KatanaBladed
Sat Oct 26 2024
ETNs possess a significant drawback that investors should be aware of.
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