The Financial Times is reporting that Switzerland is about to launch the first ever exchange-traded product (ETP). The product, called Amun Crypto ETP, will be listed on the country’s biggest principle stock exchange “Six”, which is based in Zurich.
Trading will start next week as the product will go by a ticker symbol “$HODL”. The CEO of the Amun company, Hany Rashwan, also tweeted the news.
— Hany Rashwan (@hany) November 17, 2018
According to its official website, Amun aims to “track the financial performance of the top and most liquid crypto assets, weighing them based on 2050 market cap and re-balancing monthly to ensure an accurate representation of the current crypto market”.
The ETP will track five biggest cryptocurrencies by market capitalization, which currently are Bitcoin, Ripple, Ethereum, Bitcoin Cash and Stellar. It also aims to provide “diversified exposure to the crypto space, while using its proprietary methodology to effectively manage the volatility associated with less liquid/smaller crypto assets”.
The company behind the product will charge an annual management fee of 2.5%. Amun will remove any assets that are tied to fiat currency (e.g. Tether), anonymous coins, those that lack sufficient liquidity, trade on non-reputable exchanges, or have been traded for less than six months. The company states that Amun returns 0.72% on a daily basis compared to Bitcoin’s 0.66%.
“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 for Financial Times.
Switzerland continues its push towards becoming the world’s major cryptocurrency hub. In October, Newconomy covered the story of the Swiss Financial Market Supervisory Authority (FINMA), issuing the first-ever cryptocurrency asset management license to Crypto Finance Group. We also wrote about Switzerland hosting the world’s first regulated crypto-investment bank.