Amun AG Introduced New Bitcoin ETP for Negative Price Swings

Switzerland-based fintech company Amun AG has listed a new inverse Bitcoin exchange-traded product (ETP) on the Swiss Stock Exchange (SIX).

The new product – the 21Shares Short Bitcoin ETP (SBTC) – began live trading on January 22, according to information published online.

Unlike traditional ETP, inverse products allow traders to short on the prices of the underlying asset, meaning they can earn profits as the price of Bitcoin falls. By shorting, the product allows traders to capitalize on the negative price movements of the digital asset, stated Amun CEO Hany Rashwan.

“If you’ve ever tried trading options or futures, you’ll see that it’s pretty difficult,” said CEO Hany Rashwan in an interview. “It’s not the easiest thing which is why it’s just easier to say ‘I think bitcoin price will go down, I’m going to buy this stock.”

In comparison to shorting via crypto derivatives, the inverse ETP does not require borrowed capital. Rashwan further added that the product is reset at the end of each day and the performance is not rolled over to the next day which makes it ideal to capture short term price movements of the digital asset.

In the meantime, the 21Shares joins the portfolio of ETPs owned by Amun. It is now composed of eleven trackers – both single underlying trackers as well as innovative crypto basket composite products. These ETPs are tied to Bitcoin (BTC), ether (ETH) and XRP digital assets, amongst others. However, all other products are long ETPs, whilst while SBTC is the first short product to be launched.

They will be listed on the SIX exchange in US Dollars (USD) and additionally 2 in Swiss Francs and 3 in euros. Six of them are also traded in Swiss Francs on BX Swiss, which is the second Swiss exchange.

The platform will charge traders a management fee of 2.5% on each trade. The firm recently garnered approval from the Swedish Financial Supervisory Authority (SFSA) and further admissions to listing on European markets will happen in 2020.

Amun, a technology firm specialising in exchange-traded products, issued its first crypto-backed ETP on the Swiss stock exchange in November 2018. Today, the startup offers 10 crypto-based ETP products on the Swiss SIX and Boerse Stuttgart.

According to Rashwan, the fintech company now manages a total of over $55 million in client assets noting that the most popular ETPs are HODL, bitcoin ETP and Binance coin (BNB) ETP.

“Our platform is now near complete and marks an important step towards the introduction of derivative products in conventional ETP form for the still nascent crypto market and I am proud that the Amun team continues to pioneer innovation and bring new investor-friendly institutional grade products to the market,” stated Rashwan.

Amun AG Launches XRP ETP on Swiss Stock Exchange SIX

SIX, Switzerland’s major stock exchange, announced on their official website that a cryptocurrency-based exchange-traded product (ETP) – Amun Ripple XRP (AXRP) – will be launched on April 2nd 2019. This ETP will be tracking the price of Ripple (XRP) and it will be the first-ever XRP ETP launched on the market.

The exchange-traded product was created and developed by Amun AG. The company first revealed their plans of launching an XRP ETP last month. CEO and co-founder Hany Rashwan had disclosed at that time that the company had been granted approval from the main stock exchange to issue the product.

Following today’s announcement, Amun AG has now a total of four cryptocurrency ETP products listed on the SIX exchange. Amun AG has been granted the approval to issue ETP linked to other digital assets such as Litecoin (LTC), Bitcoin Cash (BCH), EOS, and Stellar (XLM). The company aims to list all these approved cryptocurrency-based ETPs on the SIX exchange by the end of this year. However, CEO Rashwan specifically mentioned that the launch would depend on buyer’s interest.

According to the public release, all four ETP products have been developed and issued by Amun AG’s own platform – the Amun Onyx. Respectively, the platform also handles and oversees the products once they go live on the SIX exchange.

Meanwhile, the company has revealed that it is also signing on external customers to use the Onyx platform to launch their own traditional and tokenized exchange-traded funds (ETFs).

In addition to that, last November the company launched another ETP called “Amun Crypto Basket Index” with the ticker symbol HODL. This ETP can track the top 5 cryptocurrencies in terms of market capitalization and liquidity, which are Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC).

Amun’s interest in launching the XRP ETP was speculated to be due to a recent $4 million funding round, which was led by Graham Tuckwell, the first person to set up an ETF which tracked the valuation of gold.

Rashwan has stated that he wants the company to make investing in cryptocurrency “as easy as buying a stock.” Their goal is to create an easy, safe and regulated path for investors to access the crypto asset class. He further declared that as long as any cryptocurrency has “sufficient liquidity, good development records, and no nefarious activity,” Amun AG would continue developing and issuing ETP products on the market.

Last but not least, CEO Rashwan has revealed that the firm plans to have 6 to 8 additional launches this year, including other strategies, more single asset ETPs and more indices.

First Cryptocurrency Exchange Traded Product Has Been Approved in Switzerland

Most recently, a Financial Times article reported that the SIX Swiss Exchange has given its approval to an exchange-traded product tracking multiple cryptocurrencies. As such, the Swiss regulators have raced ahead of the U.S., by conferring to green light the Amun Crypto Exchange Traded Product (ETP).

Exchange-traded products (ETP) are a type of security that is derivatively priced and trades intra-day on a national securities exchange. ETPs are priced so the value is derived from other investment instruments, such as a commodity, a currency, a share price or an interest rate. Generally, ETPs are benchmarked to stocks, commodities or indices. In the case of the Amun Crypto ETP, the benchmark would be cryptocurrencies.

The approval from the SIX Swiss Exchange is a crucial event as currently no ETP exists anywhere, not even in the U.S., where the Securities and Exchange Commission (SEC) has not yet delivered on their verdict on when it would approve the first Bitcoin Exchange Traded Fund (ETF).

According to the reports, the Amun Crypto ETP will dedicate half of its assets to investing in Bitcoin (BTC), whilst the other half will be shared between Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC).

Amun’s co-founder and CEO, Hany Rashwan explained in a statement that the upcoming ETP is organized in a way to comply with the same strict policies that are required by traditional ETPs. He went on further to state that this will provide a well-regulated tool for trading cryptocurrencies for both institutional and retail investors who currently do not have access to trade crypts due to local regulatory restrictions.

The firm received preliminary approval from the SIX Exchange Regulation in September, which clearly meant that the company’s ETP would be eligible for listing on the exchange. The fintech company was established by a team of bankers with the main goal of facilitating the process of buying cryptocurrencies in a regulated manner.

Rashwan further explained in his statement the reason why the company had chosen Switzerland as its base, citing that:

“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.”

Following this, Rashwan disclosed that the company intends to launch “an index basket ETP first,” which would make it simple for investors “to ‘buy the market’ rather than trade specific crypto assets, though we plan on launching specific trackers for each asset in the future too.”