Switzerland’s leading stock exchange, SIX Swiss Exchange, is listing the world’s first Exchange Traded Product (ETP) containing multiple cryptocurrencies. The Financial Times reports the Amun Crypto ETP to launch this week
The ETP will diversify itself with 5 of the highest market cap tokens available to trade, with the majority belonging to Bitcoin.
The Amun Crypto ETP Asset breakdown is as follows:
Bitcoin (BTC) — 49.7%
Ripple (XRP) — 25.4%
Ethereum (ETH) — 16.7%
Bitcoin Cash (BCH) — 5.2%
Litecoin (LTC) — 3%
An annual management fee of 2.5% will be applied to the ETP.
An ETP is a traded security with the value derived from other financial instruments such as currencies, commodities, or indices. This particular ETP is of course a derivative of and benchmarked to cryptocurrencies.
The product offers a way for investors to safely begin to invest in cryptocurrencies without the hassle of the upfront learning curve. Compliance with regulatory restrictions and prohibition from trading in cryptos for certain investors could also be circumvented by the ETP.
CEO and co-founder of the Amun Crypto ETP Hany Rashwan said the product allows access to institutional investors who are limited to trading in securities and don’t want to deal with custody issues. Additionally, retail investors who are prohibited from trading cryptos will be allowed access.
A preliminary approval for the regulation was granted in September to Amun AG, the startup behind the ETP. The Swiss startup belongs to a large number of companies in Zug, Switzerland — also known as “crypto valley.” Their goal is to make buying cryptocurrencies as easy as possible with compliance to regulation.
Rashwan previously told Bloomberg in an email, “This was born out of our frustration at seeing vast swathes of the world excluded from easily participating in the digital assets revolution. We want to make buying crypto as easy as buying a stock.”
The Swedish exchange Nasdaq Stockholm already provides Exchange Traded Notes (ETNs) that support single cryptocurrencies. Named Coinshares, this product has attracted over $1 billion. The new Swiss ETP will likely provide further growth potential for institutional crypto. Thomas Zeeb, SIX’s head of securities and exchanges, claims that within ten years cost-efficiency will drive blockchain technologies to fully replace existing ones in financial institutions.
An ETF has been long awaited in the U.S. with no clear approval in sight. Switzerland, like many small countries, appears to be leading the charge in institutionalizing and working with blockchain and cryptocurrency companies to foster growth and innovation.