The Swiss stock exchange has approved the launch of the first-ever exchange-traded product (ETP) tracking a basket of cryptocurrencies, The Financial Times has reported.
According to the Saturday report, the Amun Crypto ETP will start trading on Switzerland’s main stock exchange Six this week, under the ticker symbol ‘HODL’. The ETP is designed to track an index based on the performance of five major digital currencies.
Nearly half of the ETP assets will be invested in the world’s largest cryptocurrency Bitcoin (BTC), while Ripple (XRP), which overtook Ethereum (ETH) as the second-largest crypto following last Wednesday’s market plunge, will account for 25.4% of the assets. Ethereum, Bitcoin Cash (BCH) and Litecoin (LTC) make up 16.7%, 5.2% and 3%, respectively.
Hany Rashwan, co-founder and chief executive officer of Amun, the London-based fintech company that’s behind the ETP, told the FT that the product had been constructed to meet the same strict standards required of conventional exchange traded products.
“The Amun ETP will give institutional investors that are restricted to investing only in securities or do not want to set up custody for digital assets exposure to cryptocurrencies,” Rashwan said, as quoted by the newspaper. “It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments.”
Trading firms Jane Street and Flow Traders had provided seed capital for the ETP and had also agreed to act as authorised participants, the FT noted.
The five cryptocurrencies in question have seen heavy losses in the past few days following a couple of big crypto sell-offs. Bitcoin, in particular, today hit a new 2018 low and now faces the risk of falling below the $5,000 level for the first time since October 12, 2017. At the time of writing, the Bitcoin price was hovering just above the $5,100 mark, according to data from digital currency tracker Coinmarketcap.