The introduction of a Bitcoin ETF is seen as a holy grail for rising prices and flooding the market with new fresh capital. In the past, the SEC had rejected all applications of an alleged Bitcoin ETF. In Switzerland, an ETF-like product has now been introduced that initially includes 5 crypto currencies.
One of the world’s first exchange-traded products (ETP) will be launched this week. The Swiss supervisory authorities of the Amun Crypto ETP have finally given the go-ahead for the launch of the Amun Crypto ETP in September, following approval by the Swiss authorities.
The ETP is a derivative product that is traded on the SIX Swiss Exchange and represents the admission of the first financial product of its kind based on crypto currencies. According to a Financial Times report, the Amun Crypto ETP will be composed mainly of Bitcoin, XRP and Ethereum. The exact list should look like this:
- Bitcoin – 49.7%
- XRP – 25.4%
- Ethereum – 16.7%
- Bitcoin Cash – 5.2%
- Litecoin – 3%
The new financial product should be of particular interest to investors who are interested in trading in digital currencies but do not have to hold their assets directly. In addition, trading is interesting for investors who do not have access to the crypto currency market due to legal restrictions.
Through the so-called “Index Basket” investors can invest money instead of buying Bitcoin, XRP or Ethereum directly on stock exchanges. The big difference to the classic crypto trade is that the respective coins do not have to be stored in a wallet and thus the risk of becoming the victim of a hack is completely eliminated.
Hany Rashwan, CEO and co-founder of Amun Crypto ETP explains that his new product opens the doors for investors who want to limit themselves to investing in securities (freely translated):
This is the result of our frustration when we saw that large parts of the world were excluded from participating in the revolution of digital assets. We want to make the purchase of crypto as easy as buying a share and give private investors access who currently have no access to crypto due to local regulatory obstacles.
The approval of a Bitcoin ETF by the SEC is expected by some industry experts for the beginning of next year 2019, although it cannot be guaranteed that the SEC will actually give the green light.