Six Swiss Exchange is Switzerland’s principal stock exchange, trading a wide range of securities. According to the exchange, ETPs “are secured, bearer debt securities that do not earn interest,” so they “are not subject to the Collective Investment Schemes Act (Cisa) and, as such, are not supervised by Finma.” The exchange has a different category for exchange-traded funds (ETFs).
Hany Rashwan, co-founder and CEO of Amun, explained that the crypto ETP “had been constructed to meet the same strict standards required of conventional exchange-traded products widely used by investors,” the publication conveyed. He was quoted as saying:
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 underlying investment of Amun ETP is Amun Crypto Basket Index (ticker: Hodl5), its website details. Mv Index Solutions (Mvis) and London-based fintech company Amun Technologies Ltd. launched the index in September. The ETP was subsequently launched by Amun AG, a subsidiary of Amun Technologies Ltd. located in Zug, Switzerland. Mvis is a subsidiary of Vaneck which currently has an application filed with the U.S. Securities and Exchange Commission to list and trade a bitcoin ETF.
Amun Crypto Basket Index “tracks performance of the top 5 crypto assets in terms of market cap and liquidity, providing diversified exposure to the crypto space while using its proprietary methodology to effectively manage the volatility associated with less liquid/smaller crypto assets,” its website describes.
The company explained that the basket excludes cryptocurrencies that are tied to a fiat currency such as tether, are designed to be anonymous such as monero and zcash, lack sufficient liquidity, trade on non-reputable exchanges, or have been traded for less than 6 months. According to the Financial Times, the ETP will carry an annual management fee of 2.5 percent.