SIX Swiss Exchange Announces the World's First Cryptocurrency Exchange Traded Product

SIX Swiss Exchange, the main Swiss stock exchange, has agreed to create an exchange-traded product based on several cryptocurrencies, a product that tracks multiple cryptocurrencies. The information was confirmed by Hany Rashwan, CEO and co-founder of Amun Crypto ETP, a Swiss start-up that backs up ETP, the Financial Times reported on Saturday.

Aun's ETP is the first multi-crypto FTE to be approved and the third crypto-related product to be listed after Coinshare Bitcoin and Ethereum trackers, and Grayscale's pink sheet products (in the off-the-shelf market). side). It would be listed under the HODL index – crypto-currency indexation fund – and would track five major crypto-currencies – bitcoin, ripple, etheric, bitcoin cash and litecoin.

ETP is a type of security whose price is derived and traded in the day on a stock exchange. The price of FTEs is calculated so that the value comes from other investment instruments, such as a commodity or currency. The fund would automatically allocate cryptocurrency distributions based on their performance in the market capitalization ranking. When one buys the stock, specialized brokerage firms purchase the equivalent amount of cryptos – depending on the distribution – and send it to a custodian so that he keeps it safe.

Rashwan said the next FTE was organized to follow the same policies as traditional FTEs. He also said the product would provide a well-regulated tool for cryptocurrency trading for both institutional investors and individuals.

"Amun's EUN will offer institutional investors limited to investment in securities or will not want to establish a custody for the exposure of digital assets to cryptocurrencies; It will also provide access to retail investors who currently do not have access to commercial crypts due to local regulatory barriers, "Rashwan said, NCC announced.

"Our Amun index will be an ETP listed on the Swiss stock exchange and will give you access to a diversified basket weighted by market capitalization and automatically rebalancing the five main cryptographic assets," reads Amun website.

The SIX Swiss Exchange has approved the listing of the world's first publicly traded multi-crypto product. Here, a man walks past a showcase containing bitcoin models in Hong Kong on August 3, 2016. Photo: ANTHONY WALLACE / AFP / Getty Images

The Amm ETP will be managed by the German index unit of the investment management company VanEck, according to the Swiss news agency Finews.com. The Swiss-based company fintech has announced for the first time its intention to introduce a crypto-FTE in September, according to Bloomberg.

Commenting on why the company chose Switzerland as a base, Rashwan said the company believed it was "the best jurisdiction" to found the foundation and that it would also serve their intent to launch products. additional ", as well as a double list on several geographic regions and stock exchanges."

The CEO and co-founder also revealed that the company plans to launch "an index basket ETP that would make it easier for investors to buy in the marketplace rather than specific cryptographic assets, although we plan to launch specific trackers for each asset. in the future. "

The approval of the SIX Swiss Exchange marks a turning point for the cryptography community, as no exchange-traded product exists anywhere. For a very long time, the US Securities and Exchange Commission has not announced a date for approving the first fund traded in bitcoins.

This announcement could contribute to the growth of Bitcoin and other cryptocurrency markets. The price of bitcoins was 5,564 USD at 12:30 pm EST Monday and has declined 13% over the past seven days, as CoinMarketCap found. The SIX Swiss Exchange is the fourth largest stock exchange in Europe with a market capitalization of $ 1.6 trillion.