SIX, a prominent stock exchange based in Switzerland, has launched a new financial product based on cryptocurrencies. This exchange-traded product (ETP) is denominated in the local fiat currency and backed with Bitcoin (BTC) and Ethereum (ETH) both.
In order to launch this new product, SIX started a partnership with two other companies: Amun AG and Bitcoin Suisse. Amun has collaterized the investment while SIX will sell it on its platform. Bitcoin Suisse will be important as it will store the underlying assets. The investment is fully collateralized, meaning that for each BTC bought by a client, one BTC will be stored in a vault.
The new offering will be listed as ABBA and it will be formed mostly by Bitcoin (90%). The rest of the assets will be in Ethereum (ETH). The co-founder of Amun AG, Hany Rashwan, affirmed that this can be a unique way for new investors to add more products to their portfolios. The product will be fully regulated, so it can be very appealing to institutional investors.
A Growing Crypto Market
This is the seventh time that Amun listed a crypto-based ETP on an exchange based in the country.
SIX is also betting heavily on this kind of asset. The company has seen what a big trend digital assets can be and it is focused on giving its clients more options to invest in this industry.