Trading of the Amun Ethereum ETP began on March 5th with the ticker symbol AETH. The financial product is backed by Switzerland-based firm Amun AG and carries an annual management fee of 2.5 percent. The listing of an Ethereum ETP marks yet another set forward for the cryptocurrency ecosystem – providing much-needed access for conservative financial institutions.
The Ethereum ETP is the third example of a cryptocurrency-based ETP listed on Switzerland’s SIX exchange and follows Amun’s Bitcoin ETP launched last month. Only last November, SIX debuted Amun’s first cryptocurrency ETP – a Crypto Basket Index – which tracked the top 5 crypto assets in terms of market cap and consisted of Bitcoin, Ether, XRP, Bitcoin Cash and Litecoin.
With their steady release of crypto ETP’s, Amun is clearly committed to increasing investor access to these underlying digital assets. Interestingly, their base prospectus issued last November states that their cryptocurrency ETP products do not qualify as traditional collective investment schemes as defined by the Swiss Federal Act on Collective Investment Schemes (CISA).
In short, this means that the products are ‘neither governed by the CISA nor supervised or approved by the Swiss Financial Market Supervisory Authority FINMA’ – and do not gain the same protection provided under the CISA.
Recent announcements of Fidelity’s cryptocurrency custody service launch (slated for March), as well as Samsung’s latest smartphone – the S10 – providing critical wallet support for a small number of cryptocurrencies, suggests a steady stream of mainstream adoption stories can be expected. Speculative prices are already reflecting these announcements, with Enjin up nearly 400% since news of exclusive listing support in the Samsung S10 broke on the 25th February.
Whilst total market sentiment remains fairly flat, expect more breaking announcements and subsequent parabolic price spikes before a general bull market is confirmed.