Switzerland’s main stock exchange has given a green light to the world’s first exchange traded product tracking multiple cryptocurrencies, just as the price of bitcoin, the most popular digital coin, has dropped to its lowest level for more than a year. The Amun Crypto ETP, which will start trading next week on the Six exchange in Zurich, has been designed to track an index based on the movements of five leading cryptocurrencies.
Zurich-based SIX Exchange is Switzerland’s top stock exchange. With a market cap of over $1.6 trillion, SIX Exchange is also the world’s thirteenth largest stock exchange. The introduction of a cryptocurrency ETP on a major exchange like SIX is a big deal, and has the potential to spark the launch of ETP and ETF products in other countries and markets.
Amun’s ETP will have the following weighted allocations at launch – BTC (49.7%), XRP (25.4%), ETH (16.7%), BCH (5.2%), and LTC (3%). Interestingly enough, XLM and EOS, which are currently ranked higher than LTC in terms of market capitalization did not make the cut. Furthermore, XRP’s 8.7% higher allocation over ETH, which is greater than BCH and LTC’s combined allocation of 8.2%, suggests that Amun and perhaps the world of traditional finance in general, is bullish on the future potential XRP.
The ETP will trade under the ticker Hodl, a nod to a favourite exhortation adopted by cryptocurrency investors — “hold on for dear life” — in response to the wild volatility that has roiled the market.
Amazing. Now the trillion dollar question is if institutional investors will HODL.