Swiss main stock exchange SIX launched Ethereum based ETP on the 5th of this month.
SIX is based in Zurich, Switzerland is a main stock exchange in the country. It trades securities such as Swiss government bonds and derivatives like stock options and has a market cap of over 1.5 trillion as of 2018.
What Is ETP?
ETP stands for Exchange Traded Product. It is a type of security priced using derivatives of an underlying asset such as a commodity, a currency, a share price, interest rate or indices. ETPs include Exchange Traded Funds (ETFs), Exchange Traded Vehicles (ETVs), Exchange Traded Notes (ETNs) and certificates.
Plans Of SIX.
ETP is Backed by the Swiss startup Amun AG, the new Ethereum-based ETP will be trading under the index AETH. The management fee of Ethereum ETP will amount to 2.5 percent.
With this new ETP, investors have the chance of investing in the second most valuable digital asset according to market capitalization (and at the moment of writing this).
AETH is the second crypto-based ETP being offered by SIX. The exchange recently listed a Bitcoin-based ETP under the ticker of ABTC (Amun Bitcoin). Amun also handles the cold storage of the Bitcoin that backs the ETP. Both ETPs have a 2.5% management fee.
SIX Group’s Ethereum ETP was first announced in November 2018, with SIX Swiss Exchange revealing that it will list five cryptocurrency-based ETPs, including Bitcoin (BTC), Ripple (XRP), Bitcoin Cash (BCH), Litecoin (LTC) and Ethereum.
According to the article, Ethereum ETP is set to acquire a market share of 16.7 percent, while Bitcoin is set to account for around half of the ETP’s assets. Ripple, now the third-top cryptocurrency, will acquire a market cap of 24.4 percent, while Bitcoin Cash and Litecoin are set to account for 5.2 and 3 percent of the market, respectively.
Amun AG and SIX only list specific digital assets that are not tied to stablecoins or fiat. Digital assets that lack sufficient liquidity are also avoided.