SIX Swiss Exchange Launches Ethereum (ETH) based ETP
The Swiss Stock exchange of SIX launched its first Ethereum (ETH) based ETP on the 5th of this month under the ticker of AETH (Amun Ethereum).
AETH tracks the investment results of Ethereum and investors need no special set up to access the product. Amun holds the underlying crypto asset in cold storage equal to 100% of the value of the notes at all times. All digital assets held by Amun are under institutional grade security with several safety measures such as the aforementioned cold storage, multiple private keys, whitelisting and audit trails.
What is an ETP?
ETP stands for Exchange Traded Product. It is a type of security priced using derivatives of an underlying asset such as a commodity, a currency, a share price, interest rate or indices. ETPs include Exchange Traded Funds (ETFs), Exchange Traded Vehicles (ETVs), Exchange Traded Notes (ETNs) and certificates.
Plans By SIX to List More Crypto Based ETPs
AETH is the second crypto based ETP being offered by SIX. The exchange recently listed a Bitcoin based ETP under the ticker of ABTC (Amun Bitcoin). Amun also handles the cold storage of the Bitcoin that backs the ETP. Both ETPs have a 2.5% management fee.
Late last year, the exchange had announced that it would list a total of 5 crypto based Exchange Traded Products: Bitcoin, Ethereum, XRP, Bitcoin Cash and Litecoin. The same 5 digital assets also make up the Amun Crypto Basket Index (HODL5). The weighted distribution of each digital asset in the index is as follows:
- BTC – 49.39%
- ETH – 16.58%
- BCH – 2.96%
- LTC – 3.87%
- XRP – 27.2%
Anum AG and SIX only list specific digital assets that are not tied to fiat (stablecoins) or designed to be anonymous. Digital assets that lack sufficient liquidity are also avoided.
SIX To Launch its Own Digital Exchange in the Second Half of 2019
The Swiss exchange also has plans of launching its own digital exchange in the second half of 2019. The new SIX Digital Exchange (SDX) will speed up trading and will initially run parallel to the existing SIX platform.
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