Amun Launches Bitcoin Exchange Traded Products in Switzerland
In Switzerland, six exchanges based in the Swiss city of Zurich recently approved the listing of a crypto ETP. The Exchange Traded product adapted the ticker HOLD as its listing ID. Following Coinbase index and Bitwise Hold 10, Amun ETP represents the value of five Cryptocurrencies. The selected cryptocurrencies are
The investment firm stated that its investors will only hold a collection of cryptocurrencies that meet the requirements it sets.
“Unlike actual assets such as stocks or gold, an index doesn’t have its own price. However, displays a value representing the prices of an underlying group of assets according to its own specific calculation methodology” the company explained.
For example, S&P 500 is calculated by taking the sum of the adjusted market capitalization of all S&P 500 stocks and then dividing it with an index divisor, which is a proprietary figure developed by Standard & Poors.
How the ETP affect Bitcoin ETF Approval?
For a long time now many companies in the United States struggled to obtain the legal status of their Bitcoin ETF. However, the Security and Exchange Commission declined to allow any of the ETF application succeed. Investors are now optimistic that the listing of the Bitcoin ETP in Switzerland would open a new gate for Bitcoin ETF.
However many cryptocurrency analysts and industry experts argue that it might not be the case. Meanwhile, the Amun ETP is conceptually comparable to an ETF, Bitcoin ETF approval is yet to come out. Both the Bitcoin ETP and ETF allows traders to invest in digital assets without requiring any regulatory concerns.
In Switzerland alone, there are six exchanges trading the HOLD ETP. The HOLD ETP will operate in the same way as other normal publicly listed stocks. Investors could sell and buy shares in the HOLD ETP to invest indirectly in the cryptocurrency markets.
“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. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments,” Hany Rashwan, co-founder and chief executive of Amun, said.
In Switzerland, the approval of a cryptocurrency exchange-traded product is trending in a positive direction. In the US too, there is a Bitcoin ETP familiar as Bitcoin investment Trust owned and run by Greyscale investment. Local markets investors can purchase investment vehicles that represent the value of Bitcoin.
Meanwhile, SEC still continues to turn down ETF application from several companies, Bitcoin ETP is somewhat gaining approval. In August, ProShares and other two companies filed eight applications for bitcoin ETF with SEC. however, the commission categorically rejected all eight applications. SEC stated that the futures market is not significant enough to provide a base value of Bitcoin.
“ProShares & other ETFs tried to solve this problem by pricing bitcoin via CBOE & CME futures markets. In theory, this gave ETFs a better chance of approval than commodity-backed ETFs, which use unregulated spot markets. The SEC wasn’t impressed, that the bitcoin futures markets aren’t ‘of significant size’ as required by the Winklevoss denial,” Kobre & Kim government enforcement defense attorney Jake Chervinsky said.
What is your take on SEC refusing to grant a legal status to Bitcoin Exchange Traded Funds? Do you think the approval of Bitcoin ETPs could open new ways towards the approval of a Bitcoin ETF?
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