Swiss stock exchange SIX has listed a Swiss-franc denominated exchange-traded product (ETP) on its platform backed by Bitcoin and Ethereum.
To launch the ETP, the exchange partnered with fintech firm Amun AG and cryptocurrency custodian Bitcoin Suisse AG and listed the product under the ticker symbol ABBA. The basket of the product is formed with 90 percent in Bitcoin and the rest in Ether.
Describing the new product, Hany Rashwan, co-founder and CEO of Amun AG, said: “It represents a unique way for investors to add the two major cryptocurrencies globally to their portfolio via a regulated product listed on SIX and backed by a Swiss-based custodian.”
The companies issuing ETPs are legally obliged to back the products on a one-to-one basis by reserves of the underlying assets. Amun has collateralized its new product by Bitcoin and Ether securely stored by Bitcoin Suisse in Switzerland.
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“This physically-backed ETP is fully collateralized, which means that for every bitcoin and ether bought for the ETP, there will be an equal corresponding crypto amount stored securely in the Bitcoin Suisse Vault,” Amun stated.
Adopting the potential crypto investments
This is the seventh ETP by Amun listed on the Swiss exchange as it already lists an XRP-based ETP, a BTC-based ETP, a bitcoin cash (BCH)-based ETP, an ETH-based ETP, the Amun Crypto Basket Index ETP, and Amun Bitwise Select 10 Large Cap Crypto Index ETP.
Meanwhile, SIX is betting big on digital asset investments. The exchange is developing a securities token offering platform. However, its launch has been postponed multiple times, and now the launch is scheduled for the fourth quarter of next year.
The stock exchange is also lining up investors for the upcoming initial digital offering (IDO), tokenized version of initial public offering (IPO), of its blockchain-based platform Swiss Digital Exchange (SDX).