Safety in a volatile market: Our 100% physically backed ETPs listed on Nasdaq Stockholm

In times when crypto assets are becoming increasingly accepted by the broader financial industry and new players are continuously establishing themselves, investors are looking for exposure to the crypto market that can offer both security and growth potential. This is where our products differentiate from other alternatives.

Our exchange-traded products (ETPs) are not just bridging the world of digital assets; they are also reliable, transparent and cost-effective investment products. Let's dive deeper into why a 100% physically backed structure makes our products the best choice for both experienced and new investors into the crypto market

What does 100% physically backed mean?

In a world where crypto exposure is often offered through derivatives and complex financial instruments, our products offer a straight and transparent path. Each unit of our ETPs represents a real share in, for example, Bitcoin that is physically stored in cold storage at our chosen custodian, Coinbase. This means that for every ETP bought and sold on the market, there is a corresponding amount of Bitcoin, or other cryptocurrency, safely stored at one of the world's most reputable crypto custodians.

Benefits of 100% Physically Backed ETPs

Easy exposure:

Investors get easy exposure to price movements without having to buy, store, and secure crypto assets themselves. This reduces the risk of technical problems, security breaches, costs, and the administrative burden that can come with holding crypto assets as an investor.

Increased security:

By entrusting custody to Coinbase, an established and regulated player within crypto custody and is also an approved custodian by Nasdaq through the Nasdaq Crypto Index, we offer a security level that individual investors can rarely achieve on their own. This protects our ETPs against the risks of loss through theft or bankruptcy. All crypto assets are stored with Coinbase in cold storage.

Transparency:

With an ETP structure that is 100% physically backed for all of Virtune's ETPs, there is clear visibility into the assets' value and ownership. Investors can verify at any time that the value of their Bitcoin ETPs corresponds to the value of the underlying cryptocurrency stored at Coinbase, this is a feature that will soon be included for Virtune’s other crypto ETPs.

Regulated and proven custody:

Coinbase is not just a leader in the industry but also a regulated institution that follows strict rules and regulations, providing an additional level of security. Moreover, Coinbase is an approved crypto custodian by Nasdaq through the Nasdaq Crypto Index.

Liquidity:

ETPs can be bought and sold like any stock on the exchange, offering high liquidity and easy access for investors. This is particularly important in a market where rapid movements can be the difference between profit and loss.

Issuer/Credit Risk:

A physically backed ETP, unlike an ETP with synthetic exposure, gives the investor exposure to the underlying crypto asset with minimal credit risk to the issuer. In the unlikely event that Virtune becomes insolvent, a Collateral Agent (LawDebenture Trust) takes over the operations and ensures that the physical holdings at Coinbase are sold off and the proceeds are returned to the investors corresponding to the ETP holdings. With this structure, investors in Virtune's ETPs get exposure to the underlying crypto asset while minimizing the credit risk to the issuer.

What does this mean for you as an investor?

If you are an investor looking to invest in crypto assets but are concerned about the risks associated with the custody itself, our 100% physically backed ETPs offer a solution. You get the benefits of owning crypto with the addition of institutional grade security. With our products, you're not just getting exposure to crypto assets – you're doing it with one foot firmly in a secure and reliable financial foundation.