Swiss Stock Exchange SIX to Enlist World’s First Multi-Crypto ETP (HODL)

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Switzerland stock exchange SIX is expected to list the world’s first multi-crypto-based exchange-traded product (ETP) by next week as reported by Financial Times on 16 November 2018.

Source: https://www.amun.com/en/

Amun

Amun is a FinTech company based in Switzerland and has plans to enlist an exchange-traded product for crypto investments on the Swiss Exchange. Hany Rashwan is the CEO of the firm. Now the Company has hired Mark Rodino as the head of global distribution, according to statements made on 14 November 2018. Amun is backed by Swiss startup Amun AG.

The first global multi-crypto-based ETP expected to be listed on Swiss Exchange will be under index HODL. As per reports, It is also expected to keep track of the major Cryptocurrencies viz Bitcoin, Ripple, Ethereum, Bitcoin Cash and Litecoin. Hany Rashwan has also addressed the media that the expected ETF will comply with all the mandatory strict norms with regards to the traditional ETPs. He also added that the Institutional and Retail Investors who are restrained in the field as they are not well knowledged or aware of the crypto friendly environment, will be provided with a well-regulated tool which can be handy for trading cryptocurrencies with ease.

Cryptocurrency Breakup Structure and ETP Control

Source: https://www.amun.com/en/

As per the announcement, Each of the cryptocurrencies mentioned within the tracking list of the ETP which will be listed shortly is expected to acquire a certain portion of the market share within the ETP. BitCoin is expected to have around 50% of the ETP’s Market share portion. The rest portion is like 25.4% to Cryptocurrency Ripple, 16.7% for Ethereum, 5.2% will be acquired by Bitcoin Cash while 3% will be acquired by Litecoin.

According to a major Swiss news agency Finews, Amun ETP index is expected to handled and managed by the German Index unit of Investment Management firm Van Eck. Founded in 1955 by John C. Van Eck, Van Eck Associates Corp. was among the early first US investment managers who provide a hand support to the then investors by helping establish a diversification in their portfolios with global diversification. VanEck international investors gold fund was the first US gold fund. VanEck Vectors exchange-traded funds (ETFs) offers more than 50 ETFs that is across various asset classes, which includes equity, fixed income, and currency markets. VanEck is one among the largest ETP providers in the US and across the world countries.

According to Investopedia, ETPs are the types of securities that are traded derivatively and trades intraday on a national securities exchange, based on investment tools such as commodity, a currency, a share price, or an interest rate. ETPs is one similar kind of Exchange-traded funds (ETFs). Amun has mentioned on its official website that SIX Swiss Exchange is the fourth largest stock exchange in Europe having a market cap of $1.6 trillion. Thomas Zeeb, Head of Securities and Exchanges at SIX pointed out that Blockchain-based digital exchanges may soon replace the conventional ones outrightly in a time span of just 10 years.

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