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Switzerland’s principal stock exchange SIX is going to be the first to launch an exchange-traded product (ETP) tracking multiple cryptocurrencies, The Financial Times reported.
The Amun Crypto Basket ETP will commence trading on the SIX Swiss Exchange on November 21. The ETP, which will trade under the ticker ‘HODL’, has been designed to track an index based on the movements of five leading cryptocurrencies.
“Just under half of the ETP’s assets will be invested in bitcoin with the remainder divided between XRP (25.4 per cent), ethereum (16.7 per cent), bitcoin cash (5.2 per cent) and litecoin (3 per cent). The ETP will carry an annual management fee of 2.5 per cent,” FT said.
It’s an ETP, Not ETF
While some people believe or have rather misinterpreted that the product is an exchange-traded fund (ETF), a spokesperson from the Swiss financial regulator FINMA has clarified that it is, in fact, an ETP. The spokesperson told news.Bitcoin.com:
“It is important to separate ETPs from ETFs, as ETPs are not subject to the Collective Investment Schemes Act (Cisa) and are therefore not supervised by Finma.”
Noting that ETFs “are funds that are traded on an exchange and normally track the performance of an index,” he emphasized that “In Switzerland, these products are subject to the Cisa.”
A spokesperson from SIX also confirmed the same to news.Bitcoin.com saying:
“ETPs are collateralized, noninterest-earning bearer debt securities which replicate an underlying [asset] (generally from the commodities sector), either on a regular or leveraged basis. Like ETFs, they trade in a multi market-making segment, but in legal terms they are not funds.”
The official website of London-based fintech firm Amun states, “Our Amun Index will be a listed ETP on the Swiss Stock Exchange and gives you access to diversified market-cap weighted and automatically re-balancing basket of the top five crypto assets.”
Hany Rashwan, co-founder and CEO of Amun, said the cryptocurrency ETP had been designed to meet the same strict standards required of conventional exchange-traded products.
“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 assets exposure to cryptocurrencies. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments,” said Rashwan.
