When crypto assets are listed on globally acclaimed equity exchanges, they automatically earn lots of exposure from both retail and institutional investors. But the fact that the world has a handful of such exchanges means that any asset that gets accepted by one of them undoubtedly hits an unlikely ‘jackpot.’
SIX, Switzerland’s largest stock exchange is one such platform, and it has been slowly and surely listing specific coins. The latest cryptocurrency to join this ‘exclusives’ is none other than Bitcoin Cash. Bitcoin Cash ETP, which according to Amun crypto-asset tracker ranks 6th, is now on Swiss stock exchange and is effectively available for traders to invest on.
About Bitcoin Cash ETP
Amun AG now has the first Exchange Traded Product (ETP) that tracks how Bitcoin Cash performs listed on its platform. The Swiss fintech company easing how one could invest in crypto assets announced this on July 5.
The Amun Bitcoin Cash ETP, on the other hand, is a US dollar-denominated collateralized product on the exchange. With an investor fee of 2.5% payable annually, the instrument has Roger Ver with 25,000 worth of BCH, cumulatively worth over $10 million, seeding it. Part of the instrument’s annual investor fee also is custody payments, insurance expenses, and rebalancing fees.
But even as Bitcoin Cash ETP gets listed, there’s no doubt that the trickle-down of institutional funds into the new assets market is making it come of age. It is giving it the much-needed legitimacy, similar to that of stocks, bonds, and equities.
Also, investors now have a larger pool of investment products to choose and earn rewards. On a broader point of view, the fact that cryptos are gaining similar attention as conventional products means that they are gradually becoming part of the acceptable tradable products.
Six, the Swiss stock exchange, is among the oldest in the world. It was formed in 1850, but still provides investment securities, which even include the government bonds and various stock bonds.
Amun is based in Zurich, although it was founded in 2018. The firm is headed by a group of distinguished serial entrepreneurs and seasoned personalities in the asset management industry. It uses an institutional-grade security and custody platform designed with several security measures, including multiple private keys, cold storage, audit trails, and whitelisting.
For the CEO of Bitcoin.com, Roger Ver, Amun is the right firm to help in the global adoption of Bitcoin Cash. He believes that their investment in the newly listed Exchange Traded Product would rally more investors to invest in it.
SIX now leads with Crypto ETPs
With the listing of the new Bitcoin Cash ETP following the previous five launched nine months ago, Amun now has the largest amount of ETPs on Six. The ETPs include all the leading ten digital assets according to Amun Bitwise Select 10 Large-Cap Crypto Index ETP (KEYS), the leading five with Amun Crypto Basket Index ETP (HODL) and three sole trackers; ABTC, AETH, and AXRP.
Amun’s co-founder and CEO, Hany Rashwan, however, sees them as a better way of giving investors a much broader portfolio of crypto assets from within a reputable exchange. The new product, according to him, is a perfect opportunity for investors to expand their portfolio.
ETPs and ETFs are technically similar, even though they are legally different and fall under different categories on the exchange. ETPs are debt securities with collateral, even though they don’t bear any interests. However, like ETFs, these debt securities are traded in the multi market-making segment even though legally, they can’t be classified as funds.
Meanwhile, SIX is looking for ways through which it can benefit from the various avenues provided by innovations in crypto. The exchange’s chair, Romeo Lacher, earlier this year, announced that the platform was going to roll out a Blockchain-powered market before the year ends. Once launched, SIX Digital Exchange (SDX) will function vis-à-vis their legacy platform.
Furthermore, with the distributed ledger technology, all trades on SDX will be “one tap,” and will be done in seconds. Its efficiency will sharply contrast that of the legacy platform, which often needs three processes and takes them days to complete them. Lacher, however, expects SIX to conduct a token offering soon.
With the launch of the Bitcoin Cash ETP, Switzerland once again stamps its authority as being ahead of the rest when it comes to financial innovation. It is a trait that it has been known for since over a century ago, especially when it comes to the “tradition of banking secrecy.”
Switzerland also is one of the most welcoming regions for crypto investments, unlike the US, which is proving a bit more restrictive. In fact, Facebook is the latest firm to target the “scarcely populated Swiss canton of Zug” as it has already announced that it would manage Libra coin in Switzerland.
Author: Lillian Peter