SIX Swiss Exchange ushers in first crypto ETP

SIX Swiss Exchange will this week list the world’s first crypto-based exchange-traded product (ETP), the Financial Times reports.

The Amun Crypto ETP has been designed to track an index based on the movements of Bitcoin, XRP, Ethereum, Bitcoin Cash and Litecoin. It will carry an annual management fee of 2.5%. 

Hany Rashwan, Co-founder and Chief Executive of London-based FinTech venture, Amun, said the offering had been constructed to meet the same strict standards required of conventional exchange traded products widely used by investors. 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, he added.

“Two rival providers, CoinShares and Greyscale, already offer digital currency investment vehicles, but these are different legal structures and linked to single coins,” the FT says.

“Jane Street and Flow Traders, two specialist market makers, have provided seeding for the Amun ETP and agreed to act as authorised participants. The ETP will trade under the ticker Hodl, a nod to a favourite exhortation adopted by cryptocurrency investors holding on for dear life in response to the wild volatility that has roiled the market.”