A major shift is underway in the German banking sector as ING Deutschland has opened up access to altcoin-linked investment products for its retail clients. Instead of forcing customers to navigate exchanges, private wallets, and seed phrases, the bank now offers exchange-traded instruments tied to leading digital assets directly through its standard brokerage infrastructure.

These new products are issued by well-known providers 21Shares, Bitwise, and VanEck, and are structured as exchange-traded products (ETPs) and exchange-traded notes (ETNs). For the altcoin community, this move is another clear signal that traditional finance is no longer ignoring the space—it’s integrating it.

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From sidelined to integrated: altcoins enter mainstream banking

For years, access to altcoins in Germany largely meant dealing with specialized exchanges, complex onboarding, and self-custody risk. ING Deutschland’s decision changes that dynamic by:

• Letting clients gain price exposure to altcoin assets via their existing securities accounts
• Using physically backed ETPs/ETNs that track assets like Bitcoin, Ethereum, Solana and others
• Keeping the entire process inside familiar online banking and brokerage systems

In practice, this means a German retail investor can now hold altcoin ETPs in the same account as stocks, bonds, and ETFs, with unified reporting, tax documentation, and a single interface. For many conservative investors who were hesitant to move funds to standalone altcoin platforms, this is exactly the kind of bridge they have been waiting for.

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How ING’s altcoin-linked products work

The instruments offered through ING Deutschland are:

• Exchange-traded products (ETPs) and notes (ETNs) that trade on regulated European exchanges
• Issued by 21Shares, Bitwise, and VanEck, all established names in the digital asset ETP market
• Physically backed in many cases, meaning the issuer actually holds the underlying altcoin in custody
• Accessible via ING’s Direct Depot brokerage platform, using the same process as buying a stock or ETF

Instead of buying altcoins directly and dealing with wallets and private keys, the client simply buys an ETP/ETN that tracks the performance of the underlying asset. The bank and issuers handle custody, execution, and settlement behind the scenes.

For investors who care more about exposure and portfolio construction than on-chain interaction, this is a highly attractive compromise.

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Why this matters for German and EU altcoin adoption

ING is one of Germany’s major retail banks. When a bank of this scale starts offering altcoin-linked products, several important things happen:

• Legitimization: Many cautious investors consider anything offered in their main bank interface as “real finance,” not a speculative frontier.
• Regulated rails: These ETPs and ETNs are listed on regulated markets and fall under existing securities and MiCA-style rules, which helps reduce regulatory uncertainty.
• Tax clarity: In Germany, tax treatment for these products is aligned with direct altcoin holdings, including potential capital gains tax exemptions for long-term positions.
• Lower barrier to entry: No need to understand wallet security, seed phrases, or bridge interfaces—just a standard order ticket in a familiar app.

As more EU banks follow this pattern, altcoins increasingly move from the “shadow” fintech world into the heavily supervised core of European finance.

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21Shares, Bitwise, VanEck: who stands behind the products?

The choice of issuers is crucial for trust:

• 21Shares is one of Europe’s largest digital asset ETP issuers, with a broad range of physically backed products listed on multiple European exchanges.
• Bitwise is a US-based digital asset manager known for index-style and thematic altcoin products, catering to both retail and professional investors.
• VanEck is a long-established asset manager that was early to push for regulated Bitcoin and altcoin investment vehicles in Europe and the US.

By partnering with these specialist firms, ING effectively outsources product structuring and underlying custody while focusing on what it does best: distribution, compliance, and client servicing.

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Benefits and trade-offs for altcoin investors

For the altcoin-savvy audience, ING’s move presents a clear set of pros and cons.

Benefits:

• Simplicity: No need to manage keys, choose exchanges, or worry about withdrawal delays.
• Regulatory protection: Products operate under securities law, disclosures, and transparency rules.
• Portfolio integration: Altcoin exposure can be managed right alongside traditional assets.
• Tax efficiency: In Germany, long-term holdings may enjoy favorable tax treatment similar to direct altcoin ownership.

Trade-offs:

• No on-chain utility: Holding an ETP is not the same as holding the underlying token—no DeFi, staking (except where structured into the product), governance, or direct on-chain interaction.
• Issuer risk: Investors rely on 21Shares, Bitwise, or VanEck to manage and custody the underlying assets properly.
• Fee layer: Product fees and brokerage commissions apply, which can be higher than self-managed exposure for advanced users.

For many mainstream investors, the convenience and regulatory comfort easily outweigh these trade-offs. For power users deep into DeFi and self-custody, these instruments are more likely to serve as a complement rather than a replacement.

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A clear signal: banks are no longer sitting on the sidelines

The bigger picture is unmistakable: traditional banks are not trying to kill altcoins—they are learning how to sell exposure to them in a way that fits their regulatory and operational models.

ING Deutschland’s integration of altcoin-linked ETPs and ETNs marks another step in that direction. It gives retail investors a bank-grade on-ramp into the altcoin market, wraps exposure in familiar financial products, and quietly moves altcoins one step closer to being treated like any other asset class in a diversified portfolio.

For the altcoin ecosystem, this is both an opportunity and a challenge: an opportunity for new capital and broader adoption, and a challenge to preserve the core values of decentralization and self-sovereignty as banks increasingly package altcoins into regulated, centralized wrappers.