In a world-first, Europe’s fourth largest stock exchange has approved the listing of an Exchange Traded Product which will track the price of the top five cryptocurrencies.
The Amun Crypto ETP (Ticker:HODL) will be listed on the SIX Swiss Exchange in the coming days.
The security will track the Amun Crypto Basket Index (HODL5) which is based on the performance of the top five cryptocurrencies.
According to the Index website the current index allocation is Bitcoin 48.69%, Ripple 25.72%, Ethereum 17.6%, Bitcoin Cash 5.11% and Litecoin 2.88%.
The Amun Index does not include coins tied to a fiat currency (such as tether) or coins designed to be anonymous (Monero, zCash).
London-based FinTech Firm, Anum Ag, has developed the investment which it labels an Exchange Traded Product. It does however operates almost identically to an ETF.
When a buyer purchases the ETP, a market maker buys the underlying cryptocurrency based on the HODL5 index allocation, which is readjusted monthly.
No similar crypto ETF or ETP exist on a regulated market anywhere in the world.
Its CEO Hany Rashwan confirming the SIX Swiss Exchange’s seal of approval on twitter today.
“Very happy to share what we’ve been working on for so long,” wrote Mr Rashwan.
“Amun AG is launching the world’s first listed crypto basket ETP! Listing on SIX Swiss Stock Exchange this week.”
— Hany Rashwan (@hany) November 17, 2018
The Amun Crypto Basket Index is maintained by VanEck’s fully regulated index arm MVIS Indices.
VanEck’s Bitcoin ETF, currently being assessed by the US SEC, will use MVIS Indices to price its underlying Bitcoin.
In a recent interview with Ran Neu-Ner on CNBC Africa, VanEck Director of Digital Assets Strategy Gabor Gurbacs said MVIS Indicies was one of the reasons he believes the SEC will approve the VanEck Bitcoin ETF.
“Our ETF, what sets it apart… The pricing that we use for Bitcoin comes from our indexing subsidiary which is a regulated entity and provided the first financial standard in regulated indices,” said Gurbacs.
Many observers believe SIX Swiss Exchange’s crypto ETF decision will put added pressure on the US SEC to approve the VanEck proposal.
The SEC’s next deadline for a decision on VanEck is December 29, 2018, however the commission can choose to delay its decision until February 2019.