"The products promise to track the price of the cryptocurrencies, less fees. They are both listed on a Nasdaq Inc (NDAQ.O) exchange in Stockholm, but trade “over the counter” in transactions that occur off exchanges within the United States." So somebody outsmarted the Winklevii???
No, the point is that these are not ETF's. Probably more accurate to call them ETN's, though that term has fallen out of use. If you own the QQQ's ETF for ex you have the right to transfer that product into some notional value of actual Nasdaq 100 stocks. ETFs have intrinsic value of the product they track. These ETN products dont have intrinsic value outside of the integrity and/or credit of the underwriting institution. The portfolio underwriting the ETN risk can literally be nonexistent.
Not sure ETN is the proper term either. My only point is that the underlying portfolio is managed risk meant to mimic the target index, whereas an actual ETF would simply hold THE ACTUAL PORTFOLIO OF RISK. Ex: VXX is an ETF because it holds a portfolio of the first 2 fix futures so as to represent 30 day out vix exposure. XIV is an ETN because there is no way to hold their target risk precisely. Instead, credit suisse product managers hold and actively trade a portfolio meant to mimic target risk in the most realistic way...which can be FAR from the actual risk. At the end of the day, if the actual risk isnt held in an ETF style portfolio, then the product is a function of credit worthiness of the underwriter. https://www.cnbc.com/2018/02/06/the...off-is-halted-after-an-80-percent-plunge.html