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blakicious

 XRP ETP to be listed by Swiss Exchange

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SIX (the major stock exchange of Switzerland), might be listing any crypto-based exchange-traded product (ETP) soon, which will track XRP’s price.

 Hany Rashwan (Swiss company Amun AG’s CEO and co-founder) revealed to CoinDesk that SIX has approved his firm to issue the XRP-linked ETP with AXRP as the ticker name, adding that: “We can comfortably say that we expect to release the world’s first XRP ETP within the next two months.”

Apart from XRP, Rashwan has also revealed that Amun has also been cleared to issue ETPs associated with four more single crypto assets such as Litecoin (LTC), EOS, Bitcoin Cash (BCH), and Stellar Lumens (XLM).

 

The SIX exchange listed its first ETP in November 2018. Amun issued this product for retail and institutional investors under the ticker name “HODL.” Since its listing, its total trading volume each month for HODL has surpassed that of XETC (an ETP focused on the tracking of crude oil).

However, the general crypto market decline has affected HODL’s price per share dropping from $15 in November to around $13. Last month, it also dropped to the second spot in terms of market turnover, with around $4 million changing hands.

In recent weeks, Amun also issued Bitcoin and Ethereum ETPs on the SIX exchange.

 

100% Collateralized

With reference to SIX’s listing rules, ETPs due to the fact that are passive investment instruments without the involvement of active trading strategies, they are not seen as collective investment schemes that requires the approval or supervision of the Federal Financial Market Supervisory Authority (FINMA) – the market regulator of Switzerland.

With this, crypto ETPs’ structural features must fulfill requirements with regards to investors’ protection efforts.

The collateral of Amun is stored with Kingdom Trust, and it plans to include more custodians in various jurisdictions as it plans to list more crypto ETPs.

The circular passed by SIX revealed that just the top 15 cryptos by market cap on CoinMarketCap at the application time would be considered for trading purposes. It also revealed that cryptos that are “based on open-source software that function according to the principles of blockchain” would be allowed as underlying instrument.

The exchange also stated that:

Quote

Tokens, in the sense of units from a project, which are often issued as part of an initial coin offering, are not permitted as underlying instrument.

 

Tokenizing ETPs

In the future, Amun hopes to launch an ERC-standard token which it will administer and run on the ethereum blockchain which it will use in tokenizing ETPs.

This is to allow itself and third parties to tokenize both traditional ETPs and crypto ETPs.

Rashwan said:

Quote

I don’t think we will have a real licensed and regulated securities token exchange with a professional partner in a reputable country until late this year or early next year – that’s my guess. But when that happens, we will be ready with three to five tokenized ETPs, including our own and others.

 

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