November 19, 2018 AtoZ Markets – As the Six Swiss Exchange, based in Zurich, has recently approved the first Crypto ETP, subsidized by the Swiss startup company Amun AG , trading in cryptos may get easier than before, as the new-born company promises.
Amun Crypto Exchange Traded Product (ETP), listed under index HODL, says it will track Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC), being the five major cryptos. Amun will mainly focus on Bitcoin, due to its dominant position in the industry, where 50 percent of Amun’s ETP will be allocated in it. XRP on the other hand will make up 25.4 percent on the company’s chart, while Ether will make up one-sixth of the fund. BCH and LTC will constitute 5.2 percent and 3 percent respectively.
Amun is not the first fintech company, representing the value of the few cryptocurrencies.There are already Coinbase Index and Bitwise Hold 10, the fintech startups, which allow purchasing the pre-packaged collection of the cryptocurrencies. Coinbase Index gives access to the Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and Ethereum Classic (ETC). Bitwise HOLD 10 Cryptocurrency Index Fund, according to its press July 24 the press release, would be tied to the ten largest cryptocurrencies.
Will Swiss ETP give some push on the Bitcoin ETF approval?
The approval of the first Crypto ETP by the main stock exchange of Switzerland is considered as a positive milestone for the industry. Despite that, Swiss ETP launch will unlikely affect the future of the Bitcoin ETF approval. An ETP already exists in the US market in the form of Grayscale Investment’s Bitcoin Investment Trust. Investors in the local market can purchase investment vehicles that represent the value of the Bitcoin (BTC). However, the state of the Bitcoin Exchange Traded Fund (ETF), which needs to be approved by the Securities and Exchange Commission is still under question. The US Securities and Exchange Commission (SEC) has postponed the decision over Winklevoss Bitcoin ETF proposal for more than half a year and rejected it in July 2018. According to the SEC, the cryptocurrency market is completely unregulated and not mature enough to handle an ETF.
Several more companies tried to launch their own ETF, but the SEC, a trendsetter for the financial and cryptocurrency world remained adamant. “ProShares & the other ETFs tried to solve the problem by pricing bitcoin through the well-respected, regulated CBOE & CME futures markets. However, the SEC stated that the futures market is not of a significant size to provide the base value of BTC.
What will increase ETF Approval chances?
The straight opportunity for institutional investors to purchase bitcoin through ETF without straight bitcoin possession causes uncertainty in right and money protection. There is no insurance or cryptocurrency depositary. In that case, to increase the probability of a BTC ETF approval, companies must offer a compelling solution to the SEC’s issue that the cryptocurrency exchange market and the futures market are not sufficient to determine the real price of BTC. Exchange-traded investment funds can become a crack that will break through a dam of uncertainty in cryptocurrency. If this happens, even more, money will come to the cryptocurrency market. Together with them, the corresponding infrastructure will appear, the necessary laws will be passed. Investors see the main thing: blockchain is a breakthrough technology, and it works, Bitcoin is great for accumulating wealth , cryptocurrency is generally independent of classical markets, and developed countries recognize the importance of the new industry. Specialists claim that Bitcoin ETFs will reach and hit the digital market in 2019 s.
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