The universe of crypto-currencies has re-gained $3 billion USD in market value overnight, as news takes hold of the world’s first crypto-based ETP (Exchange Traded Product) set to launch in Switzerland next week.
Yesterday, the Financial Times reported on the Amun Crypto ETP “which will start trading next week on the Six exchange in Zurich and which has been designed to track an index based on the movements of five leading cryptocurrencies.”
The ETP will be comprised of five cryptocurrencies: BTC (49.3% weighting), XRP (25.4% weighting), ETH (16.7% weighting), BCH (5.2% weighting) and LTC (3% weighting), although will be subject to a hefty 2.5% annual management fee.
One Small Step for Institutional …
The product provides a convenient entry point for institutional investors into the cryptocurrency markets, and will likely attract the attention of a number of mutual funds world-wide with a remit for making managed bets amongst riskier investment products.
Whilst Bitcoin futures have been available as an investment instrument since December 2017, the Swiss crypto ETF is seen as the world’s first formal investment vehicle implying the direct purchase and selling of crypto-currencies by institutional players, and likely marks an important milestone for the wider adoption of crypto-currencies as an investment option within traditional finance circles.