The Amun Crypto ETP — Bitcoin, XRP, Ethereum, Bitcoin Cash, Litecoin Included
The so-called “SIX Swiss Exchange,” Switzerland’s foremost equity market, has just revealed that it will be giving a green light to the crypto industry’s first exchange-traded product (ETP) that tracks multiple cryptocurrencies (XRP included), Financial Times reports on Saturday. The product, dubbed the “Amun Crypto ETP,” is backed by Amun, a London-based financial technology firm. Jane Street and Flow Traders, two market makers, have revealed that they have provided the seed funding for the ETP.
Interestingly, unlike other exchange-traded product proposals, this most recent vehicle will allow investors to gain exposure to five of this market’s leading assets — Bitcoin (BTC), XRP, Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
Reports indicate that the multi-crypto product, which tracks the five aforementioned cryptocurrencies, will launch next week in Zurich, a lesser-known global center for the financial world.
Although the Amun Crypto ETP is marketed as an altcoin-friendly instrument, a focus will evidently be taken on BTC, presumably due to its decade-long hegemony over this nascent industry. More specifically, just shy of 50% of Amun’s ETP will be allocated in bitcoin, while XRP will make up a quarter (25.4%). Ether makes up one-sixth of the fund, with BCH and LTC consisting of the rest at 5.2% and 3% respectively. Amun will charge 2.5% annually to its clients to manage the product.
Financial Times spoke with Hany Rashwan, chief executive at this instrument’s primary backer, regarding the product’s prospects and ethos. Rashwan, touching on the legitimacy of the Amun Crypto ETP, noted:
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,
In a jovial nod to the cryptocurrency community at large, Amun has decided that the product will trade under the ticker HODL, underscoring the fact that Amun likely has its ear close to the ground of this industry, so to speak.
Amun’s XRP- and Ether-friendly vehicle is a breath of fresh air, as the firm’s rivals, CoinShares and Grayscale, have only offered single-crypto products as of the time of press.
This development comes just days after SIX, the exchange the ETP will be listed on, exclaimed that its blockchain-based platform will oust traditional, analog-centric systems in a decade time. Thomas Zeeb, head of securities and exchanges at SIX, told Reuters:
The existing system could be completely replaced by the digital exchange in about 10 years… The moment that brokers, banks, insurance companies and big asset managers really see the cost advantages, they’ll move relatively quickly.
SIX has plans to launch the so-called “SIX Digital Exchange (SDX)” for Q2-Q3 2019, which will initially run alongside the classical SIX system. Although this news is positive for the blockchain industry as a whole, reports indicate that SDX is unlikely to launch a cryptocurrency desk, presumably due to regulatory constraints.
U.S.-based Bitcoin ETF Hype Remains
Although Switzerland’s regulatory environment is a far cry from that of America, many are still hopeful about a similar product on U.S.’ public markets. Speaking with CNBC’s Crypto Trader show, Gabor Gubacs of VanEck, who is spearheading the investment firm’s moves to launch a Bitcoin-backed ETF, explained that an ETF would bolster this industry greatly, sparking global adoption.
Title Image Courtesy of Christian Regg on Unsplash