Switzerland’s SIX Stock Exchange Opens Trading for Amun Ethereum ETP

The fund for ETH-derived risk launched a few days after the approval and release of a Bitcoin ETP in February.

Switzerland’s largest market operator, SIX Exchange, has launched trading for an exchange-traded product (ETP) based on the price risk of Ethereum (ETH). Called Amun Ethereum ETP (AETH), the offering was proposed earlier by Swiss-based financial products provider Amun AG.

At the end of February, SIX also opened trading for a similar product, Amun Bitcoin ETP.

The concept behind the products is simple - tracking the price of ETH without leverage. The ETP is composed entirely of ETH as an underlying asset, and Amun claims to be keeping the underlying funds in cold storage. However, withdrawals in ETH are not possible, and trading for AETH is dollar-denominated. Amun also claims to have the highest grade of whitelisting and secure custody with a multi-sig cold wallet.

European markets are friendlier to crypto-derived investment products. For about four years now, NASDAQ Nordic has carried two exchange-traded notes by XBT Provider, which track the prices of BTC and ETH.

However, the ETN markets mostly attract investors which demand security and use traditional finance to bet on the risk of digital assets. Derivative markets do not affect crypto-only exchanges and have failed to lift the prices of digital assets directly.

A potential US-based Bitcoin exchange-traded fund (ETF) is seen as more likely to spark a bullish sentiment. For now, however, no such ETF has been approved, and a new review period has started running for the CBOE Van Eck ETF, which was turned down multiple times in the past year. The decision on a US-based ETF is expected toward the end of the first quarter.

Amun also offers a product based on a basket of digital assets under the HODL ticker. The product tracks BTC and ETH, along with Litecoin (LTC), Bitcoin Cash (BCH), and Ripple’s XRP.

The relatively quick launch of the products is due to their approval under a more liberal regulatory regime. The Amun prospectus was banned from distribution in the US, as well as to retail investors in the European Economic Area (EEA). The product is also not protected by provisions in the Swiss Federal Act on Collective Investment Schemes, meaning investment is highly risky and might lead to a total loss of funds.

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