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.