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Bitcoin, XRP and Ethereum Dominate World’s First Crypto Exchange Traded Product, With Bitcoin Cash and Litecoin
The world’s first exchange traded product (ETP) based on cryptocurrencies will launch this week. Swiss regulators approved the Amun Crypto ETP after its preliminary approval in September.
The ETP, a derivative product, will be traded on the SIX Swiss Exchange, marking the approval of the first such crypto-based product.
According to a Financial Times report, the Amun Crypto ETP’s underlying assets will be primarily Bitcoin, XRP and Ethereum.
Amun ETP Crypto Assets
Bitcoin – 49.7%
XRP – 25.4%
Ethereum – 16.7%
Bitcoin Cash – 5.2%
Litecoin – 3%
The ETP will carry an annual management fee of 2.5%.
The product is a new on-ramp for investors who want exposure to cryptos without having to hold the assets directly. It also provides access for investors who are otherwise prohibited from trading cryptocurrencies due to regulatory restrictions.
Through an index basket, investors can “buy the market” as opposed to purchasing the assets directly or buying a competitive product that supports single cryptocurrencies only, such as Exchange Traded Notes (ETNs) from CoinShares which support Bitcoin and Ethereum.
Hany Rashwan, CEO and co-founder of the Amun Crypto ETP, says the product opens the door for institutional investors who are “limited to investing only in securities” or who “will not want to establish custody for the exposure of digital assets to cryptocurrencies.”
He adds,
“It will also provide access to retail investors who currently do not have access to trade cryptos due to local regulatory impediments.”
Amun AG, a Swiss startup, has been waiting for the SIX Swiss Exchange approval of its ETP for several months.
In an email sent to Bloomberg in September, Rashwan wrote,
“This was born out of our frustration at seeing vast swathes of the world excluded from easily participating in the digital assets revolution. We want to make buying crypto as easy as buying a stock.”
The Swiss crypto ETP preempts approval of the first regulated Bitcoin ETF by the US Securities and Exchange Commission, a product that is also intended to open the crypto markets to institutional investors.