Switzerland’s primary stock exchange SIX has listed a Tezos (XTZ) exchange-traded product (ETP) that allows investors to generate passive income.
According to an announcement, the new ETP has been issued by fintech crypto startup Amun AG in partnership with the Tezos Foundation and will trade under the symbol AXTZ on the SIX Swiss Stock Exchange.
As a proof-of-stake (PoS)-based products, Tezos investors will be able to passively earn a form of interest by staking or depositing their tokens to both maintain the network and earn rewards.
The new ETP’s main objective is to provide exposure to the performance of the token whilst simulatenously generating additional yield for investors through so-called baking rewards.
Baking is a specific term to Tezos, which enables stakeholders to participate in the staking and governance process by delegating their coins to a delegation service of their choice. Once delegated, these holdings are set in correlation with the total staking balance of the service, with rewards paid out accordingly once they have been released by the network.
It is further explained that it is the first such product that will allow investors to yield a passive income through transactions that are validated on the Tezos blockchain. In addition to that, the firm will charge an annual management fee of 2.5%.
Hany Rashwan – co-founder and CEO of Amun – explained in a statement:
“Investors will be able to buy a stock for as low as $20 and we bake/stake on their behalf and return it to them as a dividend without them required to do any staking on their own.“
The Tezos ETP will be available for both retail and institutional investors, who can participate in the rewards for contributing to the security and stability of the Tezos blockchain, “without the need to ever have to set up a crypto wallet or taking care of a private key,” said Rashwan.
Rashwan further added:
“Via our ETP, [investors can] participate in the associated rewards for contributing to the security and stability of the Tezos blockchain – without the need to ever have to set up a crypto wallet or taking care of a private key.”
The Tezos ETP is Amun’s ninth issued crypto-based ETP and according to the statement the product’s underlying Tezos tokens will be custodied with and staked by Coinbase Custody.
Other cryptocurrency ETPs listed on the SIX exchange include ETPs based on XRP, Bitcoin (BTC), a Bitcoin Cash (BCH) and Ethereum (ETH) amongst others.
Most recently, Amun has partnered up with Bitcoin Suisse to launch a new BTC and ETH- based ETP on the Swiss exhange stock.
Meanwhile, Amun AG has also launched seven of its ETPs on Germany’s Börse Stuttgart stock exchange, ready to be traded in Euros. Prior to this, the ETPs were available only in US dollars and Swiss francs.