A cryptocurrency ETF may me a step closer after a Swiss exchange announced that it has been granted permission to launch an exchange-traded product for digital assets. Zurich-based SIX exchange, one of Switzerland’s two principal stock exchanges, traditionally trades other securities such as Swiss government bonds and derivatives. The cryptocurrency ETP, to launch next week, represents their first foray into the new asset class.
The Amun Crypto ETP, which is named after London-based fintech backer Amun, will be comprised of 50% Bitcoin and 25% XRP, with the remainder made up from Ethereum, Bitcoin Cash, and Litecoin. It’ll even have a tongue-in-cheek ticker of HODL.
Chief Executive at Amun, Hany Rashwan, stated that, “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.”
ETF to Follow?
Talk of institutional entry into the cryptocurrency space comes amid a recent downturn in the crypto markets, amid fears of a longer period of stagnation. The news of cryptocurrency’s first exchange-traded product did little to reverse this, both in terms of price and sentiment, although a flow of news regarding the SEC clamping down on more ICOs may have countered any positivity the news generated.
One thing it did achieve was to rekindle talk of the Bitcoin ETF proposal from VanEck SolidX, on which a decision is due no later than February 2019. Many hope that this will inject both life and capital into the market and may usher in a new market cycle. Whilst SIX’s announcement has no direct bearing on that application, it does go to show that some establishments are willing to take a risk on cryptocurrencies over the long term.