Just a week after the launch of the bitcoin exchange product, the Swiss stock exchange SIX announced the EtFrium ETP. New trading financial products on the largest Swiss stock exchange were issued by Amun AG, a cryptocurrency company based in the Swiss canton of Zug.
However, neither ETP Ethereum’s new project, nor the bitcoin exchange product launched at the end of last month, is the first for SIX and Amun AG. The startup helped the stock exchange launch the HODL5 fund - an index of five leading digital assets - at the end of 2018.
The Swiss cryptocurrency startup Anum AG and the most Swiss stock exchange, SIX, announced the launch of Ethereum exchange trading product (ETP) according to the announcement on the site. This news appeared a few days after the stock exchange announced the launch of a bitcoin exchange product.
Ethereum ETP will be traded under the ticker AETH. Meanwhile, the bitcoin product received a ticker ABTC. SIX will charge a 2.5% fee for traders who buy or sell any product. Both will trade against the US dollar.
The SIX Swiss Exchange has previously approved a cryptocurrency exchange product (ETP) listing under the ticker "HODL" of the five main cryptocurrencies to enable investors to enter the market without the necessary technical knowledge on storing digital assets or risks that this may cause. HODL5 consists of Bitcoin (BTC), XRP, Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). The percentage of each asset in the index corresponds to the corresponding market share and changes every month.
ETP Bitcoin and Ethereum from SIX should not be confused with ETF.
Those who remember the release of the previous SIX stock exchange product in November last year may recall that there was a lot of confusion regarding the difference between the stock fund, similar to the expected offers from the Winklevoss twins and VanEck, and the ETP ABTC, AETH and HODL5 offered by SIX.
ETF is a kind of ETP. There are already examples of cryptocurrency ETPs that serve the US market. Bitcoin investment fund Grayscale Investments is one of these. Since the SEC or other relevant financial regulatory authority (FINMA in the case of Switzerland) does not require ETP approval, they are easier to create.
However, since such ETPs, which are launched by SIX, do not require the same approval as ETFs, which are now considered by the SEC, they are not considered as potential catalysts for large mood swings in Bitcoin space and the surrounding cryptocurrency ETF markets. This is because when the ETF receives approval from the SEC, it will be considered the approval of the asset class by one of the largest financial regulators on the planet. Since SEC regulations are often adhered to throughout the world, it will make it more likely that other jurisdictions will introduce similar crypto-friendly policies.
