Do ETNs have tax advantages?

Crypto ETNs and taxes can get tricky. The exact tax hit depends on your location and the ETN itself. Some governments treat ETN gains like regular income, meaning higher taxes than capital gains on long-term investments. So, you might want to consider these factors before going all in with ETNs.

Is an ETN better than an ETF?

Ultimately, it depends on your preference and risk appetite. Objectively speaking, crypto ETNs are the proverbial new kid on the block and are relatively complex. Compared to ETNs, crypto ETFs face a more standardized regulatory environment. They're subject to the scrutiny of securities regulators in the areas where they're offered. ETF sponsors are held to stricter standards regarding fund management, investor protection, and disclosure.

Are ETNs more risky than ETFs?

Between ETNs and ETFs, the former tends to be riskier because it combines both default risk and market risk. An ETF might take a tumble if the market crashes, but it wouldn't vanish unless something truly disastrous happened. But if an ETN's issuer folds, you might as well bid farewell to the money you invested.