The world’s first crypto-based Exchange Traded Product (ETP) is to start trading next week on SIX Swiss Exchange, Europe’s fourth biggest exchange with a market capitalization of $1.6 trillion, the Trustnodes reported.
Backed by the Swiss startup Amun AG, the first global crypto ETP will be listed under the ticker of HODL, and will track the biggest cryptos by market share and accordingly allocates assets. The fund consists of five major cryptocurrencies: Bitcoin (48,13%), Ripple (29%), Ethereum (16,39%), Bitcoin Cash ABC (3,74%), and Litecoin (2,74%).
“The Amun ETP will give institutional investors that are restricted to investing only in securities or do not want to set up custody for digital assets exposure to cryptocurrencies. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments”, – said Hany Rashwan, co-founder and chief executive of Amun.
The fund automatically allocates crypto distributions based on their performance in market cap rankings. When you buy the stock, market makers buy the equivalent amount of cryptos – according to the distribution – and send it to a custodian for safe keeping.
In return Amun charges a 2.5% yearly management fee for this passive investment.