Exchange-traded products (ETPs) tied to XRP and litecoin have gone live on Nordic Growth Market, a unit of Borse Stuttgart.
The Swiss Stock exchange of SIX launched its first Ethereum (ETH) based ETP on the 5th of this month under the ticker of AETH (Amun Ethereum). With this new ETP, investors have the chance of investing in the second most valuable digital asset according to market capitalization (and at the moment of writing this).
AETH tracks the investment results of Ethereum and investors need no special set up to access the product. Amun holds the underlying crypto asset in cold storage equal to 100% of the value of the notes at all times. All digital assets held by Amun are under institutional grade security with several safety measures such as the aforementioned cold storage, multiple private keys, whitelisting and audit trails.
What is an ETP?
ETP stands for Exchange Traded Product. It is a type of security priced using derivatives of an underlying asset such as a commodity, a currency, a share price, interest rate or indices. ETPs include Exchange Traded Funds (ETFs), Exchange Traded Vehicles (ETVs), Exchange Traded Notes (ETNs) and certificates.
Plans By SIX to List More Crypto Based ETPs
AETH is the second crypto based ETP being offered by SIX. The exchange recently listed a Bitcoin based ETP under the ticker of ABTC (Amun Bitcoin). Amun also handles the cold storage of the Bitcoin that backs the ETP. Both ETPs have a 2.5% management fee.
Late last year, the exchange had announced that it would list a total of 5 crypto based Exchange Traded Products: Bitcoin, Ethereum, XRP, Bitcoin Cash and Litecoin. The same 5 digital assets also make up the Amun Crypto Basket Index (HODL5). The weighted distribution of each digital asset in the index is as follows:
- BTC – 49.39%
- ETH – 16.58%
- BCH – 2.96%
- LTC – 3.87%
- XRP – 27.2%
Anum AG and SIX only list specific digital assets that are not tied to fiat (stablecoins) or designed to be anonymous. Digital assets that lack sufficient liquidity are also avoided.
SIX To Launch its Own Digital Exchange in the Second Half of 2019
The Swiss exchange also has plans of launching its own digital exchange in the second half of 2019. The new SIX Digital Exchange (SDX) will speed up trading and will initially run parallel to the existing SIX platform.
What are your thoughts on the Swiss Exchange of SIX launching an Ethereum ETP? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
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Swiss stock exchange SIX Group has listed an ethereum-based exchange-traded product (ETP) backed by Amun.
Crypto exchange Gemini founders Tyler and Cameron Winklevoss have long sought the creation of a bitcoin exchange-traded fund.
And while that process remains in flux, a company tied to the brothers has won another U.S. patent related to the creation of exchange-traded products tied to cryptocurrencies and digital assets.
The patent was awarded to a firm called Winklevoss IP LLP, and both Winklevoss brothers are included as the inventors along with Evan Louis Greebel, Kathleen Hill Moriarty and Gregory Elias Xethalis.
The patent, awarded on June 19, details a method “for providing an exchange-traded product holding digital math-based assets” as well as the issuance of shares tied to that ETP. It adds to the body of intellectual property the Winklevosses have sought to obtain, though it’s not entirely clear when or how the concepts will be applied to real-world products.
An ETP, such as an exchange-traded fund (ETFs), is a type of security, the price of which is derived from other investment instruments – in this case, cryptocurrencies.
As CoinDesk previously reported, the Winklevoss brothers won a patent last month for a system that settles transactions for ETPs tied to cryptocurrencies. Like the other patent, this week’s award names a variety of cryptocurrencies, from major ones like bitcoin and monero to more obscure ones like BBQcoin.
Publicly available data shows that this week’s patent is the seventh crypto-related patent the Winklevoss brothers have received, with the first being awarded in December of last year.
The U.S. Securities and Exchange Commission (SEC) once denied a bid proposed by the Winklevoss brothers in March 2017 to list a bitcoin-tied exchange-traded fund (ETF), citing “the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.”
Winklevoss brothers image via Shutterstock
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Swissquote Bank, an online banking service, has launched a bitcoin exchange-traded product (ETP) that it claims will curb the cryptocurrency’s volatility.
The Bitcoin Active Certificate works by moving investor’s holdings between bitcoin and U.S. dollars with the help of a machine learning algorithm that forecasts short-term market movements using technical indicators, buy/sell pressure and analysis of social media sentiment.
Swissquote said in a statement: “Our strategy is focused on reducing volatility by increasing the amount of cash held during periods of uncertainty and downturns. This lower-volatility strategy is intended to decrease volatility to help create more consistent potential returns in the long run.”
The bank explained it will hold from 60–100 percent of the portfolio in bitcoin, depending on level of confidence its bitcoin price prediction, while the remainder is held in U.S. dollars. Trading will be carried on the SIX Swiss Exchange, it added.
According to a Bloomberg report, Peter Rosenstreich, head of market strategy at the bank, said:
“Investors are excited about the cryptocurrency but are unnerved by its volatility. So we tried to build a trading algorithm that’s a protection against downside risks.”
Notably, the new certificate isn’t the bank’s first foray into the cryptocurrency space.
Back in July, Swissquote announced a new bitcoin trading feature in partnership with digital currency exchange Bitstamp. The service allows customers to exchange bitcoin with euros and U.S. dollars through their accounts.
Trading screen image via Shutterstock
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