SIX Lists Ethereum-Backed ETP for Trading

This is the third crypto-backed trading product by the exchange.

Swiss stock exchange SIX has listed an Ethereum-based exchange-traded product (ETP) on its trading platform.

According to the official announcement, the Etherum-based ETP is available to trade from March 5 and is listed under the ticker symbol AETH. The product is backed by Switzerland-based company Amun AG and carries an annual management fee of 2.5 percent.

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This is the third crypto-based trading product listed on the Swiss SIX Exchange as last month it introduced Amun Bitcoin ETP – a similar product backed by Bitcoin – which is trading under the ticker symbol ABTC.

The Zurich-based exchange-listed Amun Crypto Basket Index ETP last November, which was its first crypto trading product. Trading under the ticker symbol HODL, the basket tracks the top five digital currencies – Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin – in terms of market capitalization and liquidity.

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Since its launch, HODL index has gained 1,113 percent, according to an Amun report, while generating $400,000 worth of trades on the first day of listing.

What is an ETP?

Similar to any exchange-traded indexes, ETPs derive their value from the underlying assets. These products are very flexible and can be traded and settled just like any other company shares listed on a stock exchange.

Last month, Stockholm-based Bitcoin exchange-traded note (ETN) operator XBT Provider shelved its plan to offer a crypto basket trading product. The company cited that the uncertainties of the blockchain splits associated with hard forks have forced the firm to halt its developments.

The Cloud Around ETFs in the US

Meanwhile, in the United States, many firms are pushing for the Securities and Exchange Commission’s (SEC) approval to launch Bitcoin-backed ETF. However, the financial regulator is reluctant to approve the financial instrument and rejected many applications including one by the Winklevoss-brothers.

Currently, two ETF applications – one by the Chicago Board Options Exchange and other by NYSE Arca – are under review process by the SEC.

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