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 crypto-assets 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, such as an AI crypto index selected around a particular theme. 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. The European broker guide groups access by country and exchange.

Brokers distribute securities created by an issuer. The issuers of crypto ETPs on Nasdaq Stockholm and Xetra include Virtune.

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 crypto-assets from a wallet.

Account availability and tax treatment depend on your country and account type. For private individuals tax resident in Sweden, ISK eligibility and tax follow Swedish account rules. 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, and Virtune owes the payment defined in its terms. The crypto-assets held in custody back that payment obligation.

Some products also manage staking. In these products, rewards allocated to investors remain inside the security rather than arriving as crypto-assets to manage personally. Rewards are variable, and the relevant product's deductions and allocation terms matter. The staking guide describes 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. Virtune's index ETPs are debt securities, not funds; the crypto index ETP guide covers selection and rebalancing.

What does buying and holding cost?

The management fee is deducted from the product's value over time. The crypto ETP cost guide explains how the daily fee, spread and currency effects differ. 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 post bid and ask prices continuously during exchange hours. Sharp market moves or technical disruptions can temporarily leave quotes unavailable or widen the spread. A wider spread or limited liquidity can make entering or leaving a position more costly.

For a physically backed Virtune ETP, the crypto-assets pledged for holders reduce credit exposure to Virtune. A collateral agent acts for holders if Virtune cannot pay; payment from those assets depends on the amount recovered, rather than the investor’s original purchase price.

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.