SIX Group, Swiss stock exchange, recently listed an Ethereuem-focused ETP (exchange-traded product). The announcement was made on Tuesday and it states that on March 5 the trading of Amun Ethereum ETP started, with AETH as the ticker symbol. This product has the annual management fee of 2.5% and is backed by Amun AG, Switzerland-based company.
An ETP is a financial instrument that has an underlying asset, like a cryptocurrency or a commodity. It is traded on the stock exchange just like shares are.
Amun Ethereum ETP is not the very first ETP that is cryptocurrency-based and that is listed by SIX. Amun Bitcoin ETP is also now traded starting at the end of February, with ABTC being the ticker symbol. Also, during November 2018 we saw the addition of Amun Crypto Basket Index ETP listed, with symbol HODL, one that tracks the main 5 crypto assets based on liquidity and market capitalization. It is made out of ether, bitcoin, bitcoin cash, Litecoin and XRP.
According to the firm, basket ETP is up by a huge 1,113% since it was launched.
Amun states that the cryptocurrency-based ETPs that were issued during November are not considered a collective investment scheme based on the CISA (Collective Investment Schemes) and the Swiss Federal Act. Because of this fact, the ETP products are not approved or supervised by Swiss Financial Market Supervisory Authority FINMA and not governed by CISA. Investors do not get protection under CISA.
Another related thing that needs to be said is that SIX Group just announced their plants to launch a proprietary blockchain platform in order to speed up bonds and stocks trading. This is expected to happen by the end of the year.
Image from: Six Group website.