Switzerland’s Leading Stock Exchange To Launch Multi-Crypto ETP
SIX Exchange, Switzerland’s leading stock exchange, announced its plans of launching what will become the first multi-crypto exchange-traded product (ETP).
By offering the ETP, the Swiss-based exchange is set to give users exposure to a product that contains five of the leading cryptocurrencies in the market, including Bitcoin (BTC) Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC).
In keeping with crypto terminology, the Amun crypto ETP will list under the commonly used trading basket identified under the HODL ticker.
Weighting for the various cryptocurrencies sees the largest digital asset Bitcoin account for about 50 percent of the ETP’s assets.
Ripple’s XRP will make up the second largest share at 25.4 percent and Ethereum accounting for about 16.7 percent. The other two crypto assets in the product Bitcoin Cash and Litecoin will account for 5.2 percent and 3 percent respectively.
Commenting on the ETP that will likely go live next week, Amun AG co-founder and CEO Hany Rashwan is quoted in the Financial Times as saying that their product is designed to remain compliant with the same stringent rules that govern traditional ETP
“The Amun ETP will give institutional investors that are restricted to investing only in securities or do not want to set up custody for digital assets exposure to cryptocurrencies.”
Hany added that the product will benefit retail investors who, until now, could not access such products at cryptocurrency exchanges mainly due to impediments imposed by local regulatory authorities.
Switzerland’s crypto-friendly environment
The Amun CEO also revealed that the decision to have the product listed in Switzerland wasn’t an arbitrary one. He said that the company had explored about 23 exchanges in different locations and jurisdictions from around the world, before settling on Switzerland.
Amun AG has its offices in the Swiss town of Zug, commonly called the ‘crypto valley.’ The parent company, U.K based fintech Amun Technologies, first revealed its plans for an exchange-traded product last September.
At the time, the firm said that its product would help the investor community to ‘buy the market.’ the item would allow investors to get into the crypto market.
The ETP index is reportedly going to be managed by investment firm VanEck’s German-based index unit.
Amun AG’s announcement for the ETP comes hot on the heels of comments made by SIX’ securities and exchanges head Thomas Zeeb. According to him, blockchain has the potential to completely disrupt the current exchange market within the next ten years.
He added that this would happen when legacy brokers, banks, and insurance companies realize the cost advantages.
One of the first ETP products is the XBT Providers Bitcoin ETP dubbed Coinshares that launched in 2015 on Nasdaq Stockholm, Sweden’s top exchange. The product has so far attracted investments of up to $1 billion.
Market analysts and experts have said that the approval and adoption of Bitcoin ETFs could open the crypto market to big institutional investors, even more than what products like cash-settled Bitcoin futures can achieve.
Thus a lot of interest is directed towards the U.S. Securities and Exchange Commission (SEC), which should be giving its latest decision on nine Bitcoin ETF proposals it initially rejected back in August.
The U.S securities watchdog recently ended the process of collecting public feedback on Bitcoin ETFs by ProShares, Direxion, and GraniteShares.
This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.