How to buy Avalanche exposure through an ETP
Summary
You can buy Avalanche price exposure through Virtune Avalanche ETP at a broker offering the product. You own a physically backed security in your investment account, without managing a personal crypto wallet.
- Virtune Avalanche ETP provides AVAX price exposure through a listed security.
- Virtune holds the underlying crypto-asset with a custodian as collateral.
- The broker offers the purchase route; management fees and trading costs are separate.
How to buy Avalanche exposure
Virtune Avalanche ETP offers AVAX price exposure through a security listed in Stockholm and Helsinki. A broker offering the product lets you hold the investment without buying AVAX into a personal wallet.
Avalanche is a network of blockchains. AVAX is its native crypto-asset, used to pay fees and help secure the network through staking. Its maximum supply is 720 million units. What Avalanche is explains the network and the role of AVAX.
Why buy Avalanche through an ETP?
The ETP lets you follow AVAX's price through a broker without choosing a network for a wallet transfer or maintaining a crypto wallet. Virtune arranges custody of the AVAX backing the security.
This product is not staked, so owning the ETP does not allocate network staking rewards to you. Holding AVAX itself allows network transactions and staking participation; the ETP provides a listed investment in the asset's price.
Virtune holds AVAX with a custodian as collateral for the ETP. The crypto-asset backs the security you own; it is not a personal coin balance in your name.
Buying through a broker
At your broker, the product can be found by its full name or the ISIN shown below. The broker's order page identifies the listing, trading currency, current buy and sell prices and applicable charges. If the broker offers several listings, they still refer to the same security where the ISIN is the same.
SE0022050092 identifies the security. Its Nasdaq Stockholm ticker is VIRAVAX; Nasdaq Helsinki uses VIRAVAXE.
The Avalanche product page brings together available brokers, product documents and current details. Account availability and tax treatment depend on your country and account type; the exchange listing alone does not establish either.
Costs of buying and holding the ETP
The management fee is deducted from the product's value over time. It is different from the costs of trading: the broker may charge commission, the buy and sell prices have a spread, and a currency conversion charge can apply when the trade uses a different currency from your cash account. The table below separates these costs.
Costs when buying Virtune Avalanche ETP
| Cost | Charged by | When |
|---|---|---|
| Brokerage commission | Broker | On every purchase and sale |
| Difference between bid and ask price | Market | On every trade |
| Management fee, 1.49% per year | Issuer | Ongoing, from the product's value |
| Currency conversion | Broker, if applicable | If the product trades in another currency |
Risks to understand
Crypto-asset prices can move sharply, so the value of the ETP can fall. Crypto markets continue trading when stock exchanges are closed; the next ETP quote can therefore differ substantially from the previous close.
The security also carries issuer and custody risks. If Virtune cannot meet its obligations, what investors recover depends on the crypto-assets held as collateral and the process for enforcing their rights. Problems with custody or delays in recovery can affect the outcome. These product risks are separate from the convenience of holding the investment at a broker.
The crypto ETP buying guide explains the purchase process and the difference between a security and a crypto-asset holding.
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Sources
- Avalanche: Avalanche Primary Network
- Avalanche (Ava Labs): AVAX Token
- Virtune Investor Relations: Collateralization Methodology
- Virtune Investor Relations: Prospectus
