How to buy Litecoin price exposure at a broker
Summary
You can buy Litecoin price exposure through Virtune Litecoin ETP at a broker offering the product. You own a physically backed security in your investment account, without managing a personal crypto wallet.
- Virtune Litecoin ETP provides LTC 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 Litecoin exposure
Virtune Litecoin ETP offers LTC price exposure through a security listed on Nasdaq Stockholm. A broker offering VIRLTC lets you hold that investment in your brokerage account, without buying Litecoin into a personal wallet.
Litecoin is a crypto-asset used for payments and merchant transactions. Someone holding LTC can send it using a wallet or payment service. The ETP instead provides an investment linked to LTC's price. What Litecoin is explains the payment network and coin.
Why buy Litecoin through an ETP?
An ETP makes Litecoin exposure available alongside other securities in an investment account. Virtune handles custody of the LTC backing the product, and you do not have to manage private keys or sign coin transfers.
You own the security rather than LTC that can be sent to a merchant. This keeps the investment separate from using Litecoin as a payment method, while leaving its value linked to the crypto-asset's price.
Virtune holds LTC 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.
Its only listing is Nasdaq Stockholm, ticker VIRLTC. The product's ISIN is SE0023951082.
The Litecoin 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 Litecoin 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, 1.95% 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
- Litecoin Foundation: Bitcoin vs Litecoin: What are the differences
- Virtune Investor Relations: Collateralization Methodology
- Virtune Investor Relations: Prospectus
