Switzerland's main stock exchange SIX Swiss Exchange will list the world's first cryptographic exchange (ETP) product next week, according to the Financial Times (FT) report on Saturday 16 November.
Backed by the Swiss startup Amun AG, the first global cryptographic ETP will be listed under the HODL index and will track five major cryptocurrencies: Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC).
According to the article, each cryptocurrency will acquire a certain market share in the next ETP, with Bitcoin accounting for about half of ETP's assets. The rest should be divided into fractions, with 25.4% in XRP cryptocurrency now second and 16.7% in Ethereum, while Bitcoin Cash and Litecoin will buy respectively 5.2% and 3% of the market.
Amun's co-founder and CEO, Hany Rashwan, commented that the upcoming ETF is organized to meet the same stringent policies required by traditional ETPs. According to Rashwan, this will provide a well-regulated cryptocurrency trading tool for both institutional and retail investors who are limited in the field from crypto-hostile environments.
The Amun ETP index will be managed by the German index unit of the investment management company Van Eck, according to the leading Swiss news agency Finews.com. While Amun AG is based in the Swiss "crypt valley" of Zug, it is said to be a subsidiary of Amun Technologies, a fintech company based in the United Kingdom. The company announced its plans for the first time to introduce a cryptographic ETP at the end of September this year, according to Bloomberg.
According to the official Amun website, SIX Swiss Exchange is Europe's fourth largest stock exchange with a market capitalization of $ 1.6 trillion. On Wednesday, November 14th, head of SIX stocks and exchanges Thomas Zeeb said that blockchain-based digital exchanges will entirely replace conventional ones in "about ten years", citing a great interest in the economic benefits of technology from brokers, banks, and insurance companies.
ETPs are a type of security that is valued derivatively and trades intraday on a national stock exchange, based on investment instruments such as commodities, a currency, a share price or an interest rate, according to the website of investments and finance of New York Investopedia. ETPs can be actively managed funds, including exchange-traded funds (ETFs) and others.
Some experts have predicted that the adoption of Bitcoin ETFs will be a "broader deal" than a cash-settled Bitcoin futures contract, and will therefore provide a broader basis for the growth of cryptographic markets.
Recently, the US Securities and Exchange Commission (SEC) stopped accepting public feedback on the revision of Bitcoin ETF policies, following the previous denial of nine applications to list and trade various BTC ETFs from three companies, including ProShares, Direxion and GraniteShares.