How do you buy a crypto ETP?

How to buy crypto exposure through a broker

You can buy a crypto ETP through a broker that offers the product. The investment goes into your brokerage account as a listed security, alongside other securities you hold there. You do not need to buy coins on a crypto exchange or set up a personal crypto wallet.

For example, Virtune Bitcoin Prime ETP gives exposure to Bitcoin's price. Virtune holds BTC as backing for the product, while you own the ETP security. Other products follow individual crypto-assets or an index of several assets. An ETP's underlying asset and terms determine what the investment gives you.

Exchange-traded products can trade on stock exchanges, but an exchange listing alone does not mean every broker offers a particular product. Virtune's product pages show available broker routes and the security's current details.

How does the purchase work?

A product's full name and ISIN identify the security on a broker's platform. The ISIN is particularly useful when one ETP has listings on several exchanges: the ticker can differ between venues, even though the security is the same. The English buying guides below give the identifiers for each product.

The broker's order page shows the exchange listing, trading currency and current buy and sell prices. The difference between those prices is the spread. The broker also shows its own commission and any currency conversion charges. The trading currency of a listing can differ from the cash currency in your account.

After a purchase, the holding in your account is the ETP. Its value follows the underlying crypto-asset or index, with the product's fees and terms affecting the result. A later sale is a trade in the listed security, rather than a transfer of the underlying coins from a wallet.

Account availability and tax treatment depend on your country and account type. A product being listed on a European exchange does not by itself establish which accounts can hold it or how a particular investor is taxed.

Why use an ETP for a crypto investment?

An ETP provides a way to keep crypto price exposure in a brokerage account used for other listed investments. Your broker holds the security, while custody of the underlying crypto-assets is handled within the product. You do not have to manage private wallet keys or transfers between a crypto exchange and a wallet.

Virtune's products are physically backed. The corresponding crypto-assets are held with a custodian as collateral for the securities. A collateral agent represents investors in matters relating to that collateral. You own the ETP, while the assets held in custody back the security's claim on Virtune. What a crypto ETN is explains that structure in more detail.

Some products also manage staking. In these products, rewards allocated to investors remain inside the security rather than arriving as coins to manage personally. Rewards are variable, and the relevant product's deductions and allocation terms matter. How staking works explains the mechanism.

An index ETP brings several selected crypto-assets into one holding. Virtune manages the underlying assets and index adjustments, so the investor does not have to maintain a separate wallet or trade for every component. An index ETP is not a fund; how crypto index ETPs work explains selection and rebalancing.

What does buying and holding cost?

The management fee is deducted from the product's value over time. A broker may charge commission on a purchase or sale, and the spread is a separate trading cost. Currency conversion can add another charge if the trade uses a currency different from the cash account.

Staked products can have deductions from rewards as well as the management fee. The product's own terms explain the allocation; a reward limit is not a promised annual return. Each buying guide has a cost table showing the current management fee and the types of trading costs, with product-specific staking terms where applicable.

Risks to understand

Crypto-asset prices can move sharply. Crypto markets operate continuously, while an ETP trades during its exchange's opening hours. If prices move while the exchange is closed, the next ETP quote can differ substantially from the previous close.

Market makers provide quotes, but that does not guarantee a particular spread or that a trade can be executed on the terms an investor expects. A wider spread or limited liquidity can make entering or leaving a position more costly.

The security also carries issuer and custody risks. If Virtune cannot meet its obligations, what investors recover depends on the assets held as collateral and the process for enforcing their rights. Custody failures, losses or delays can affect recovery. These product risks are separate from the convenience of holding the security at a familiar broker.

Physical backing does not prevent the underlying assets losing value. An index can contain several crypto-assets that fall together, and staking rewards do not offset every price loss. The relevant product page brings together its prospectus, KID and terms.