11.22.2018

World’s First Cryptocurrency Index ETP Lists on SIX

SIX – which owns and manages the Swiss stock exchange – welcomes Swiss fintech Amun as a new Exchange Traded Product (ETP) issuer to its trading segment. The Amun ETP is the world’s first crypto index ETP listed on a regulated stock exchange. It is based on the Amun HODL5 index, which includes the four top crypto currencies defined by market capitalization: Bitcoin (BTC), Ethereum Ether (ETH), Ripple (XRP) and Litecoin (LTC). Trading of the new product starts today.

Amun AG was established by a team of FinTech entrepreneurs and bankers in July 2018, incorporated and registered in Zug, Switzerland, as a public limited corporation. After exploring more than 28 different exchanges and territories around the world, Amun AG settled on Switzerland for its financial excellence and regulatory stability.

An ETP is a collateralized, non-interest-paying bearer debt security issued as a security and traded as well as redeemed in the same structure on a continuous basis. Collateral is deposited with a third party and amounts to at least 100% of the outstanding amount. ETPs relate to an underlying instrument that is admitted by the Regulatory Board of SIX Exchange Regulation, i.e. that has a price that is set regularly and that is publicly accessible. Unlike ETFs, an ETP is not a collective investment scheme in the sense of the Federal Act on Collective Investment Schemes (CISA) and with that is not supervised by FINMA. This product is not CCP eligible.

The underlying of the product is the Amun Crypto Basket Index (HODL5), an index comprised of the four most liquid crypto currencies defined by market capitalization, i.e, Bitcoin (BTC), Ethereum Ether (ETH), Ripple (XRP) and Litecoin (LTC). The product is fully collateralized. Flow Traders acts as a market maker to this product guaranteeing liquidity during trading hours.

Source: SIX

  • Crypto currency index includes the five largest and liquid eligible crypto currencies
  • Switzerland offers crypto investors an excellent regulatory environment

Investors can “buy the market” and invest in the crypto asset class in a professional and reputable jurisdiction without worrying about custody, which for the underlying components of the ETP is handled by qualified and independent custodians and held in cold storage.

With the Amun Crypto Basket HODL5 ETP (ticker: HODL, ISIN: CH0445689208) the Zug-based fin-tech company Amun AG launches the world’s first exchange listed crypto-currency index product (ETP), a SIX Swiss Exchange product. The ETP gives access to a diversified market-cap weighted and automatically re-balancing index of the top eligible crypto assets. The underlying components of the product physically replicate the rules-based Amun Crypto Basket Index, maintained by MV Index Solutions (MVIS), the index division of VanEck.

The Amun Crypto Basket Index (HODL5) presently includes four crypto assets: Bitcoin, Ethereum, Ripple, and Litecoin. These assets represent approximately 75% of the total crypto market. The Amun index methodology aims to effectively manage the volatility of crypto assets with the health of the index being evaluated on an ongoing basis every quarter.

When an underlying asset undergoes a hard fork, the newly created asset will be counted as a separate asset and will not be added to Amun HODL5 Crypto Index until they meet the eligibility criteria. For this reason, the Bitcoin Cash hard fork last week forced the index to drop both successors (Bitcoin Cash ABC and Bitcoin Cash SV) due to limited custody offerings.

Hany Rashwan, CEO and co-founder of Amun AG:
“The mission of our company is to make investing in crypto as easy as buying a stock, and the launch of the Amun Crypto Basket Index ETP is a crucial step in this process. It allows investors around the world to access this innovative and exciting asset class in a regulated manner. We also plan to launch more products across multiple geographies, including ETPs that track specific eligible crypto-assets.”

Ophelia Snyder, Chief Product Officer and co-founder of Amun AG:
“Nothing else in the market is like our ETP. There have been hardly any suitable financial instruments for investors to engage in the growing market for crypto assets. The lack of diversification, inadequate regulatory standards, and limited tradability were some of the most important obstacles. Our ETP attempts to solve this by having the same principal characteristics as a physical gold ETP, appealing to a wide range of investors.”

Mark Rodino, Managing Director & Global Head of Distribution of Amun AG:
“We live in uncertain times, and crypto-currencies act as a store of value, protecting against inflation and geopolitical risk. Crypto-currencies are also uncorrelated to traditional asset classes, and their volatility is currently at a record low, but for too long this asset class has only been available to institutional investors in certain areas. Our product changes all that.”

The Amun Crypto Basket Index ETP is a crypto asset-backed and fully collateralised product. It is denominated in US dollars and rebalances monthly, with the adoption of moving-average price smoothing out market volatility. The investor fee is 2.5% per annum.

Amun AG is a Silicon Valley-backed fin-tech company based in Switzerland which aims to issue ETPs that make investing in crypto as easy as buying a stock. Amun is owned by its parent company, Amun Technologies Limited, based in London, UK.

Source: Amun

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