- March 11, 2019
- Posted by: giancarlo
- Category: News
Switzerland’s principal stock exchange, SIX, might be listing another crypto-base exchange-traded product (ETP) that would track the price of Ripple’s XRP, the third largest cryptocurrency by total market cap, narrowly trailing Ether (ETH).
In an interview with CoinDesk, co-founder and CEO of Swiss company Amun AG, Hany Rashwan, said that his company has received approval from SIX to issue the ETP under the ticker AXRP.
“We can comfortably say,” added Rashwan, “that we expect to release the world’s first XRP ETP within the next two months.”
Notably, Amun AG already offers an array of crypto ETPs. However, all of them track the price of a specific token, and are not backed by the underlying asset, making them synthetic instruments. Many crypto proponents believe that the crypto market will take off again once ETPs that are backed 1:1 by the underlying cryptoasset are developed and traded. In this scenario, anyone or any institution purchasing shares of the ETP would, in effect, be buying the actual cryptoasset, hence driving up the price.
Rashwan went on to say that Amun has also gained clearance to issue ETPs linked to four more individual cryptos — including Stellar Lumens (XLM), EOS, Litecoin (LTC), Bitcoin Cash (BCH). Although he did not specify a timeline for the launch of these products, he indicated that they will be based on buyer interest, and that they would be available for trading on SIX by year end.
In November of last year, SIX listed its first ETP that tracks a weighted basket of the top cryptoassets. Amun issued the product — which can also be called an ETF (exchange traded fund), which is linked to more than one asset — under the ticker HODL, the popular crypto slang for investors who hold onto their crypto tokens instead of selling them, especially in a bear market.
Rashwan also noted that most of the buyers of its crypto ETPs have been based in Switzerland, but Amun has also seen demand from overseas investors who have access to Swiss markets.