Hello dear readers,
the market is still waiting for Bakkt's new Exchange Traded Funds (ETF), but it's moving faster in other areas. Since the end of last year, green light has been given for the first ETP (Exchange Traded Product) in Switzerland.
In this post I would like to share an article with more information about the topic.
Here you can find the original article: https://www.btc-echo.de/gruenes-licht-fuer-den-ersten-schweizer-krypto-etp/
Picture Source Shutterstock and BTC-Echo
The Swiss Stock Exchange SIX approves the Amun Crypto ETP. The so-called Exchange Traded Product lists under the ticker HODL and should contain besides Bitcoin further Altcoins such as ETH and XRP.
Regulated crypto financial products are on everyone's lips. These enable institutional investors to access the crypto market.
While the new crypto-ETP is not the long-awaited Bitcoin ETF, it is at least another step towards integrating crypto into the realms of traditional financial markets. The Amun Crypto ETP is reportedly a derivative that has the underlying assets on Bitcoin (49.7 percent), Ripple (25.4 percent), Ethereum (16.7 percent), Bitcoin Cash (5.2 percent) and Litecoin (3 Percent). In other words, investors are investing not only in cryptocurrency # 1 but also in a number of legacy coins.
ETP or ETF?
According to some media reports, the new financial product is supposed to be an ETF. This is not quite true. Because told Financial Times, Amun CEO Hany Rashwan explicitly from an ETP:
"The Amun ETP will be available to institutional investors who are only allowed to invest in securities or who do not wish to establish securities custody for cryptocurrency digital assets. It will also allow retail investors who currently have no access to crypto exchanges due to local regulatory barriers. "
Ultimately, ETFs are a subcategory of ETPs. ETP stands for Exchange Traded Product, so both versions are listed financial products that run on an underlying asset. The price of financial products depends on the performance of the underlying. In the case of the Amun ETP these are the courses of the pictured tokens.
What kind of ETP the Amun Crypto ETP is exactly is unclear. If, contrary to expectations, it is an ETF, it would have been expected that Rashwan would call it that. Ultimately, the difference of the respective products in the regulatory requirements by the stock exchange supervision and investor protection.
Not the big thing
For the crypto-ecosystem, every report about a regulated financial product is good news. However, we must state at this point that the listing on the Swiss stock exchange SIX is not the big hit yet. Crypto-ETPs already exist. For example, New York-based financial services provider Grayscale announces an investment trust that is de facto a Bitcoin ETP. There is also a Bitcoin ETN (Exchange Traded Note) in Sweden.
A breakthrough in the integration of crypto assets into traditional financial markets can only be expected with the approval of the first true ETF. There are already a large number of applications for this. So far, however, these have failed every time to the requirements of the US Securities and Exchange Commission. The most famous example of this is the rejection of the Gemini ETF of the Winklevoss twins.
Source of the original article: https://www.btc-echo.de/gruenes-licht-fuer-den-ersten-schweizer-krypto-etp/
Greetings and hear you in my next article.
Michael Thomale - @michael.thomale
