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wilslaw

The Listing of the world’s first crypto ETP to take place next week

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The first crypto Exchange Traded Product (ETP) will start trading next week on SIX Swiss Exchange (the 4th largest in Europe) which has a market cap of $1.6 trillion.

 

Amun AG, a crypto startup has been permitted to list an index fund on a traditional stock exchange. Cheif Executive and co-founder of Amun AG, 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.”

 

The fund allocates assets to the biggest cryptocurrencies according to their market share. At present, they have about half on bitcoin and almost 30% on Ripple, which is currently ranked 2nd, after overtaking ethereum. In addition, they listed ABC chain, Bitcoin cash and Litecoin.

 

Hany, back in September said that: “After exploring this across 23 different exchanges and territories around the world, we settled on Switzerland. We believe Switzerland to be the best jurisdiction for our base and intend, after launching our initial products on the SIX Swiss Exchange, to both launch additional products as well as dual-list across additional geographies and stock exchanges. We plan on launching an index basket ETP first; it allows investors to simply ‘buy the market’ rather than trade specific crypto assets, though we plan on launching specific trackers for each asset in the future too.”

 

Crypto distributions are allocated by the fund based on the performance of cryptocurrencies in the market cap rankings.

 

When you purchase the stock, the equivalent amount of cryptos is purchased by the market makers and then sent to a custodian to safeguard it. Two specialist market markers, Flow traders & Jane street will function as authorized participants, with the index to trade under HODL's ticker.

 

Technically, the Exchange Trading Notes (ETN) of Coinshares are an unsecured debt by the issuer, however they collateralize them with Cryptos. While the product of Grayscale have taken advantage of a loophole having some stressful requirements. 

 

ETP's umbrella term has described majority of these structures. ETFs are the most popular, due to the fact that you don't have to secure the underlying asset which you have bought.

 

A 25% yearly management fee is charged by Amun for the investment, where you purchase some cryptos that amounts to about 75% crypto-market share just by purchasing a stock on SIX Swiss Exchange.

 

With this security, Europeans will be able to purchase Cryptos through their pensions portfolio. This means that pension funds will now be able to allocate a small amount for diversification purposes.

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