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Amun AG, a startup in Zug, Switzerland, received a license from the Swiss authorities to offer a new product traded on a stock exchange with cryptocurrency (ETP).
An ETP is a generic term to indicate a security that derives its price from an underlying asset (such as a currency, commodity, a security) and is traded on a regulated stock exchange. It could refer to a number of investment options traded on the stock exchange, including exchange traded funds (ETFs), publicly traded commodities (ETCs) and exchange traded notes (ETNs).
Anum referred to the instrument only as an ETP and at the moment it is unclear whether or not it is an ETF, ETC or ETN.
Amun AG has stated that its ETP will be based on a collection of the five most liquid cryptographic assets, which refers to "HODL5". The currencies contained in the EPT will be bitcoin, ether, Ripple XRP, litecoin and bitcoin liquidity. The company will purchase cryptocurrency using cash from its customers. The assets will then be transferred to custodial hands, for which the company will charge management fees of approximately 2.5 percent.
The fund also provides its prices from MVIS, an institutional price monitoring index developed by VanEck.
Amun's CEO Hany Rashwan explains: "Amun ETP will offer institutional investors limited to investing only in securities or will not want to establish custody for the exposure of digital assets to cryptocurrencies, and will also provide access to investors to retail that currently do not have access to the crypto trade due to local regulatory impediments ".
ETP will be traded on SIX Swiss Exchange, the official stock exchange in the country. Based in Zurich, the platform earned over $ 100 billion during the first half of 2018 and is estimated to be worth more than $ 1 trillion.
Financial operators of the Grande Lega in the United States have struggled to get a crypt-based ETF on the track for years without success. Some of the major players in the industry, such as the Winklevosses Gemini Exchange in New York, have submitted applications for bitcoin ETFs only to be scaled down by the Securities and Exchange Commission (SEC). Currently, nine applications previously rejected by SEC staff are awaiting review by the agency commission and a bitcoin ETF launched by VanEck in cooperation with SolidX is awaiting a decision.
In August 2018, US investors had their first access to a note traded on the exchange (ETN) called "Bitcoin Tracker One" on the Nasdaq Stockholm Exchange in Sweden, set up for the first time in 2015. Unlike a ETF, which issues shares of an underlying asset, an ETN is similar to a bond. It is an unsecured debt note that can be bought and traded until it reaches its expiration date, at which point the debt on the note must be repaid.
Before August 2018, investors had been able to buy into the ETN using euro or the kora, the Swedish national currency, and the tracker's dollar listing paved the way for greater Western interest.
Less than a month later, however, the SEC suspended US access to Bitcoin Tracker One and Ether Tracker One, another ETN issued by the Swedish company XBT Provider AB. The SEC has cited investor confusion as the main reason for blocking investors from participating in both initiatives.
