The price of Bitcoin has been influenced many a time in the optimism of getting an approval from the SEC of the United States of America; though it has been pending for eternity. Nevertheless, Europe has always been crypto-friendlier than the US concerning regulatory limitations. E.g. Stockholm provides a bitcoin futures trading option through XBT fund since 2015.
Switzerland now comes ahead of SEC to approve a fund based on cryptocurrencies to be traded on the Swiss Stock Market. The Swiss financial regulatory terms the listing as an ETP (Exchange Traded Product) which is analogous to ETF (Exchange Traded Fund) in the US. SIX Swiss Exchange, based in Zurich, will start the trading of Amun crypto-based ETP listed under index HODL from next week.The Swiss financial regulatory terms the listing as an ETP (Exchange Traded Product) which is analogous to ETF (Exchange Traded Fund) in the US. Click To Tweet
The ETP is designed to track the HODL index comprising of the five well-known cryptocurrencies. This includes Bitcoin [BTC], Ethereum [ETH], Ripple [XRP], Bitcoin Cash [BCH] and Litecoin [LTC]. The division of the fund gives 50% allocation of Bitcoin alone. The rest is divided as 24.4% Ripple, 16.7% Ethereum, 5.2% Bitcoin Cash, 3% Litecoin. The annual management fee for the ETP is 2.4%.
Amun Technologies is a UK-based fintech headed by Hany Rashwan. He is one of the most influential silicon valley entrepreneurs who has made their fortune before the 30s; having worked with HSBC, Stoxx other SIX subsidiaries. The Swiss Subsidiary of Amun Technologies, Amun AG; will be monitoring the fund under Mark Rodino as head of global distribution. They will be introducing a series of passive investment instruments to facilitate investors.
The progress of legal and authorised instruments for investing in cryptocurrencies in Switzerland has not only provided for futures contracts but also extended to derivates. Several banks have launched crypto derivatives in Switzerland, among them Vontobel, Swissquote as well as the derivatives expert Leonteq.
While the world crypto-news awaits SEC’s ETF approval to the nine pending cryptocurrencies based fund, European fintech companies have had no problem in launching derivates and futures contracts. Increased global adoption would, hence, compel the SEC to move ahead with the ETFs in the apprehension of being left behind.