Tanya Abrosimova
Independent Analyst
- Switzerland approves the first crypto ETP tight to a basket of five major coins.
- The market turns a blind eye to the decision.
Switzerland’s main stock exchange introduced Amun Crypto ETP, the first world's first ETP (Exchange Traded Product) that will track prices for multiple virtual currencies. The instrument designed to follow the movements of the five largest coin will start trading this week on the Six exchange in Zurich.
The investments in ETP will be divided between Bitcoin (50%), Ripple's XRP (25.4%), Ethereum (16.7%), Bitcoin Cash (5.2%) and Litecoin (3). According to Amun's co-founder and chief executive Hany Rashwan, the investment vehicle adheres to the same strict regulatory standards as all the traditional Exchange Traded Products.
“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 commented.
CoinShares and Greyscale - two rival providers of cryptocurrency investment vehicles - are linked to single coins and have different legal structures, which makes Amun Crypto ETP a unique tool for traders interested in bulk investing.
Hardcore cryptocurrency bulls, that practice the religion "hold on or die", will love ETP's ticker "Hodl".
Meanwhile, the cryptocurrency market stays in red, extending the losses of the previous week with little reaction to the news so far. The introduction of crypto ETP may be regarded as a positive signal, though, many market players are waiting for the US SEC's decision upon crypto ETF proposed by SolidX and VanEck.
BTC/USD is changing hands marginally above $5,500 handle, down over 60% since the beginning of the year. The coin's market value dipped below $100B for the first time since October 2017 amid global sell-off triggered by a combination of technical factors and nervous sentiments before Bitcoin Cash hard fork that took place on November 15.
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