The Swiss are here to play! Switzerland’s principal stock exchange SIX Swiss Exchange will list the world’s first multi-crypto-based exchange-traded product (ETP) next week. Backed by Amun AG, the first global multip-crypto ETP will be listed under index HODL. HODL will track five major cryptocurrencies: Bitcoin, Ripple, Ethereum, Bitcoin Cash, and Litecoin. The Swiss Stock Exchange loves Crypto!
According to the article reported by the Financial Times, each cryptocurrency will acquire a certain market share within the upcoming ETP, with Bitcoin accounting for around half of the ETP’s assets. The rest are expected to be divided in fractions, with XRP taking 25.4%, Ethereum with 16.7%, and Bitcoin Cash and Litecoin taking 5.2% and 3% respectively.
Van Eck, a German investment management company, will be managing the Amun ETP index. While Amun AG is based in the Swiss “crypto-valley” town of Zug, it is actually a branch of Amun Technologies, a UK based fintech company. They had announced plans to get involved with a crypto ETP in late September of this year.
SIX Swiss Exchange is the fourth largest stock exchange in Europe. SIX boasts a market capitalization of $1.6 trillion dollars. To add more bullishness to this news, the head of securities and exchanges at SIX, Thomas Zeeb, claimed that blockchain-based digital exchanges will entirely replace conventional ones in “about 10 years”, citing a large interest in cost advantages of the technology by brokers, banks, and insurance firms.
ETPs represent a type of security that is priced derivatively and trades intraday on a national securities exchange. They use tools that can be found with commodities, a currency, a share price, or an interest rate. ETPs can reportedly be actively managed funds, including EFTs and others.
Some experts have claimed that the adoption of Bitcoin ETFs will have a bigger impact on the markets than cash settled Bitcoin futures contracts – therefore, ETFs could be the catalyst for explosive growth of the crypto markets.
In Sweden, XBT Providers already have a Bitcoin ETP called Coinshares, which has attracted around $1 billion since 2015 when it listed on major Swedish exchange Nasdaq Stockholm.
Recently, the US Securities and Exchange Commission (SEC) stopped accepting public feedback on their Bitcoin ETFs policy review. They did so after having denied 9 applications to list and trade various BTC ETFs from three companies, including ProShares, Direxion, and GraniteShares.
The world is moving towards accepting and adoption Bitcoin and Cryptocurrencies. Institutional Investors, retail investors, and Financial institutions are all moving towards adopting and retailing cryptocurrencies. Don’t get left behind! What do you think? Let us know on our Facebook page!
