How to buy XRP through a broker
Summary
You can buy XRP price exposure through Virtune XRP ETP at a broker offering the product. You own a physically backed security in your investment account, without managing a personal crypto wallet.
- Virtune XRP ETP provides XRP 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 XRP exposure
Virtune XRP ETP lets you hold XRP price exposure through a listed security at a broker. Virtune holds XRP as backing for the ETP, while the investment in your account is the security. It does not give you shares in Ripple, the company.
XRP is the crypto-asset of the XRP Ledger. It can be transferred on the network and used as a bridge between currencies: one currency can be exchanged for XRP, then XRP for the destination currency. What XRP is explains this payment use and the difference between XRP and Ripple.
Why buy XRP through an ETP?
An ETP offers XRP exposure through a brokerage account, without requiring you to arrange an XRP wallet or transfer tokens on the ledger. Custody of the underlying XRP is handled within the product.
You own the ETP rather than XRP you can send as a payment. This is the main distinction between a broker-held XRP investment and holding the crypto-asset itself. Virtune XRP ETP does not distribute staking rewards.
Virtune holds XRP 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.
Virtune XRP ETP has ISIN SE0021486156. Its tickers are VIRXRP on Nasdaq Stockholm, VIRXRPE on Nasdaq Helsinki, VRTX on Xetra and ETNVIRXRP on the Warsaw Stock Exchange.
The XRP 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 XRP 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
- XRP Ledger: Cross-Currency Payments
- Virtune Investor Relations: Collateralization Methodology
- Virtune Investor Relations: Prospectus
