The spread represents the difference between the bid price and the ask price, and is one of the measures that helps measure the liquidity of an ETC.

The first and largest digital asset, enabling decentralized peer-to-peer transactions. Bitcoin with a capital B refers to the blockchain network, while bitcoin with a lower-case b refers to the cryptocurrency.

A block is a data structure where digital transactions are stored. They are the basic building block of blockchains.

A blockchain is a chain of blocks of data that are immutably chained together via cryptography and stored on a distributed and decentralized database.

Blockchain transaction costs, also known as transaction fees, are fees paid by users for the processing and validating of their transactions on a blockchain network. These fees are typically paid in the native cryptocurrency of a network and serve as an incentive for miners or validators to include transactions in a block and secure the network. Transaction costs vary and depend on factors such as network congestion, transaction size, and priority set by users. For Ethereum, fees can be split into base fees, which are the minimum fees required for the inclusion of a transaction in a block, and priority fees, which are an optional additional fee, similar to a tip, users can include to incentivize faster processing of their transaction.

A digital form of a country's fiat currency, which is issued by its central bank.

A coin is a cryptocurrency, which is native to a specific blockchain and an integral part of it (e.g., as payment for transaction fees). A coin is independent of any other platform. For example, Ether on the Ethereum blockchain.

Specified amount of the underlying cryptocurrency to which each ETC security provides exposure to. On a particular day, the ETC security can be viewed as giving exposure to that amount of cryptocurrency.

The core protocol of a blockchain network is the set of rules and procedures that define how the network operates, achieves consensus, validates transactions, and adds new blocks to the blockchain. It defines the foundational aspects that ensure the proper functioning and security of a blockchain network.

A crypto winter refers to an extended period of negative sentiment and lower average asset valuations across a large number of cryptocurrencies. An analogy in traditional finance would be a bear market.

A digital asset recorded on a Blockchain that is often neither issued nor controlled by any centralized authority.

DeFi provides blockchain-based financial services in which intermediaries are (to some extent) replaced by automated protocols.

Digital assets represent value, rights and obligations on a blockchain.

Encryption is a cryptographic technique used to secure the confidentiality and integrity of data by transforming information into a coded format, which can only be deciphered by authorized parties possessing the corresponding decryption key.

The native cryptocurrency of the Ethereum network.

A decentralized, public blockchain network that supports composable smart contracts which can be used to create decentralized applications and tokens and facilitate peer-to-peer transfers.

ETCs are usually secured debt obligations that are backed by one or more underlyings. ETCs can be traded on exchange. 

Fiat currencies are issued and backed by central banks, such as the U.S. dollar and the Euro.

A fork occurs as a consequence of a change in a blockchain’s protocol. A so called “hard fork” happens when the change to the protocol is not backward compatible, which creates two separate networks with two different cryptocurrencies.

A fungible token is a type of digital asset, which is interchangeable with other tokens of the same type. Each unit of a fungible token is considered equal to any other unit of identical size. For example, a single unit of bitcoin.

A layer 2 is a protocol built on top of an existing blockchain network. Layer 2s typically aim to increase transaction speed and solve scaling difficulties of Layer 1 blockchain networks.

A ledger is a database, which tracks the movement of assets. Blockchain technology creates a decentralized, public and unalterable ledger of all transactions recorded.

A participant in the consensus of a proof-of-work blockchain, adding blocks to the blockchain for rewards.

Mining is the process of creating valid new blocks containing transactions for proof-of-work based blockchains. To link a new block to the last one, a computationally intense mathematical puzzle must be solved.

In the context of cryptocurrencies, native to a blockchain refers to the primary and original cryptocurrency of a specific blockchain. A native cryptocurrency typically plays a central role in the consensus mechanism of its blockchain and is used for paying transaction fees in the network.

A node is a participant in a blockchain network that maintains a copy of the distributed ledger. Nodes verify transactions and maintain the integrity of a blockchain, which makes them an essential part of the network.

NFTs are non-fungible tokens, meaning that no one unit is identical and equally tradeable for another. Non-fungible tokens represent unique digital property, including collectibles, artworks, and intellectual property. NFTs are not inherently exchangeable 1:1 with another unit.

A nonce is a special number that is added to a block in a proof-of-work blockchain during the mining process. The nonce is adjusted by miners so that the resulting hash of the block will have a sufficient number of preceding zeros at the beginning of the hash.

Open-source refers to software, where the code is made publicly accessible. Anyone has access to the code and the right to use it.

A peer-to-peer network is a decentralized system of computers. The computers, also called nodes, perform the same tasks and have the same power. Nodes are connected to each other and can exchange information without an intermediary or central server.

A peer-to-peer payment refers to the direct transfer of assets between two parties without an intermediary.

The replication of an index or reference asset by physically buying the underlying securities or assets.

The product fee, also referred to as the Total Expense Ratio (TER) or all-in fee is subtracted pro-rata daily from the coin entitlement. It comprises the Issuer’s costs for the ETC programme, primarily service provider costs for the custodian, trustee, programme arranger and other service providers as well as other costs such as listing fees.

A blockchain consensus mechanism, where validators stake a certain minimum number of their cryptocurrencies and are then randomly selected to validate transactions and create new blocks.

A blockchain consensus mechanism, where miners compete to solve computationally intensive puzzles to validate transactions and create new blocks.

A public blockchain is a decentralized, open, and permissionless database, where anybody can join the network, establish a node, and view the history of the blockchain.

SPVs are legal entities created for a specific purpose, usually for isolation of financial risk.

A stablecoin is a digital token that is pegged to an asset, like a national currency or gold.

Staking is a process in which cryptocurrency holders voluntarily lock up their coins to participate in the consensus mechanism of a proof-of-stake blockchain. These consensus participants are called validators. In exchange for validating transactions on the blockchain network, validators receive a reward referred to as staking yield.

Staking rate is a proof-of-stake metric, which shows the percentage of supply participating in the consensus mechanism by staking.

Staking yield is a proof-of-stake metric, which shows the annualized yield or reward validators get in exchange for staking.

A token is any digital asset built using blockchain technology, including cryptocurrencies, stablecoins, security tokens, and NFTs.

The process of transforming assets, rights, and obligations into a digital, tradeable token on a blockchain.

A tokenized deposit is a digital representation of a bank deposit as a token on a blockchain. Tokenized deposits are issued by financial institutions.

A participant in the consensus of a proof-of-stake blockchain, involved in validating blocks for rewards.

A (crypto) wallet is a hardware device or software that safeguards public and private keys. It allows users to store, send and receive crypto assets.