The world’s first multi-crypto Exchange Traded Product will officially trade next week on Switzerland’s Principal stock Exchange – the SIX Swiss Exchange.
Amun ETP’s approval by SIX
The SIX Swiss Exchange has approved the world’s first crypto-based Exchange Traded product (ETP) to trade on its platform. The new ETP will index the five leading cryptos per market capitalization –Bitcoin (BTC-USD), Ethereum (ETH-USD), Ripple (XRP-USD), Bitcoin Cash (BCH-USD) and Litecoin (LTC-USD).
The ETP is backed by a London-based tech company called Amun, thus its name Amun Crypto ETP. Two renowned market makers Jane Street and Flow Traders have already invested the seed funding for the altcoin.
Luring institutional and retail investors
According to Amun’s CEO and co-founder Hany Rashwan, the ETP will introduce both institutional and retail investors to cryptocurrencies. “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 asset exposure to cryptocurrencies. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments.”
Amun ETP’s Assets distribution
Amun’s ETP’s underlying assets will be shared as follows; Bitcoin will get the lion’s share of 49.7%, Ripple’s XRP will come second at 25.4%, 16.7% will be allocated to Ethereum while Bitcoin Cash and Litecoin will get 5.2% and 3% respectively.
Amun Crypto ETP will go live next week after the approval. The product will rival CoinShare’s and Greyscale’s offerings. The two providers launched their products much earlier although their designs differ from that of Amun’s. The providers are yet to list more digital assets on their ETPs.
Amun’s ETP will be trading under the ticker symbol HODL (Hold for dear lives), with the aforementioned market markers Jane Street and Flow Traders as its authorized participants.
SEC frustrating crypto-based ETPs
Crypto-based ETPs are intended to lure institutional investors into the cryptocurrency space. However, the US Securities Exchange Commission (SEC) is frustrating these efforts within the regions of its jurisdiction. The commission has so far turned down nine Bitcoin ETF applications with its efforts geared towards clamping down on unregistered cryptocurrency operators.