Ethereum ETP goes Live on Swiss Exchange
By Tyler Smith – Crypto Investor
The Swiss stock exchange, SIX Group, has listed an Ethereum Exchange Traded Product (ETP) as of the 5th March under the ticker AETH. An ETP is a type of security that is derivatively priced and trades intra-day on a national security exchange. This ETP will track the underlying Ethereum asset and allow investors to bet on its price without buying cryptocurrency.
The Amun Ethereum ETP makes a total of three cryptocurrency-based ETPs listed on the SIX exchange. The exchange listed the Amun Bitcoin ETP at the end of last month under the ticker ABTC, allowing traders of the exchange to bet on the price of Bitcoin without buying Bitcoin in the process.
These two products come after the exchange introduced the Amun crypto basket index ETP back in November last year under the symbol HODL. This basket tracks the top five cryptocurrencies by market capitalisation which includes Bitcoin, Ethereum, XRP, Bitcoin Cash and Litecoin at current, updating when necessary. SIX claim the Amun crypto basket is up 1113% since launch.
These products are both very new to the market and still must gain traction with investors. Many institutions would like to speculate on the price of a cryptocurrency without buying crypto as they are unfamiliar with the technology and do not wish to hold it. These products are one such vessel that allows these institutions to get involved without the technical risks associated with cryptocurrencies.
Crypto ETPs like this do not qualify as a collective investment scheme under the Swiss Federal Act on Collective Investment Schemes (CISA). Due to this, these products are not required to be governed or supervised by the Swiss Financial Market Supervisory Authority (FINMA).
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