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The Amun Crypto ETP – Bitcoin, XRP, Ethereum, Bitcoin Cash, Litecoin Included
The so-called "SIX Swiss Exchange", the leading Swiss stock market, has just revealed that it will give the green light to the first cryptographic trade (ETP) that tracks more cryptocurrencies (including XRP), reports Saturday's Financial Times. The product, dubbed "Amun Crypto ETP", is supported by Amun, a financial technology company based in London. Jane Street and Flow Traders, two market makers, have revealed that they have provided the funds for ETP.
Interestingly, unlike other product offerings traded on the stock exchange, this newer vehicle will allow investors to gain exposure to five of the main assets of this market: Bitcoin (BTC), XRP, Ethereum (ETH), Bitcoin Cash ( BCH) and Litecoin (LTC).
Reports indicate that the multi-crypto product, which tracks the five cryptocurrencies mentioned above, will be launched next week in Zurich, a global center less known for the financial world.
Although the Amun Crypto ETP is being marketed as an altcoin friendly tool, a focus will evidently be taken on BTC, presumably due to its decade-long hegemony over this nascent industry. More specifically, only 50% of Amun's ETP will be assigned in bitcoins, while XRP will be a quarter (25.4%). The ether constitutes one sixth of the fund, while BCH and LTC are composed of the rest at 5.2% and 3% respectively. Amun will charge 2.5% per year to its customers to manage the product.
The Financial Times spoke with Hany Rashwan, CEO of the main supporter of this tool, regarding the perspectives and the product ethos. Rashwan, touching the legitimacy of Amun Crypto ETP, noted:
Amun's EUN will offer institutional investors who are limited to investing only in securities or who do not wish to establish custody for the exposure of digital assets to cryptocurrencies. It will also provide access to retail investors who currently do not have access to the crypto trade due to local regulatory impediments,
In a jovial gesture to the cryptocurrency community in general, Amun decided that the product will be traded under the HODL ticker, emphasizing the fact that Amun probably has his ear near the ground in this sector, so to speak.
Amun's XRP and Ether-Amun vehicle is a breath of fresh air, as the company's rivals, CoinShares and Grayscale, only offered single cryptographic products at the time of printing.
This development comes just a few days after SIX, the exchange on which ETP will be listed, has exclaimed that its blockchain-based platform will oust traditional centric analog systems in a decade. Thomas Zeeb, head of securities and stock exchanges at SIX, told Reuters:
The existing system could be completely replaced by digital exchange in about 10 years … When brokers, banks, insurance companies and large wealth managers really see the benefits in terms of costs, they will move relatively quickly.
SIX plans to launch the so-called "SIX Digital Exchange (SDX)" for Q2-Q3 2019, which will initially be used together with the classic SIX system. Although this news is positive for the blockchain industry as a whole, reports indicate that it is unlikely that SDX will launch a cryptocurrency, presumably due to regulatory constraints.
U.S. based Bitcoin ETF Hype remains.
Although the regulatory environment in Switzerland is far from the US, many still hope for a similar product on US public markets. Speaking with CNBC's Crypto Trader exhibition, VanEck's Gabor Gubacs, who leads the investment company's moves to launch a Bitcoin-supported ETF, explained that an ETF would greatly strengthen this sector, triggering global adoption.
Title Image courtesy of Christian Regg on Unsplash
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