Switzerland Approves World’s First Cryptocurrency ETF
SIX Swiss Exchange is all set to start trading the world’s first Exchange Traded Product (ETP) this week. The fourth largest exchange has been given the authorization to list Exchange Traded Products on its trading lists and the exchange plans to do this as soon as next week.
The ETF application was submitted by a cryptocurrency startup in the country called Amun. A couple of months on the cryptocurrency startup from Switzerland has been approved to list five of their ETPs on the fourth largest exchange in the world; SIX.
Amun released a statement with regard to the ETP and it was;
“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.”
To List Five Cryptocurrencies
Post this approval from Swiss officials and announcement from Amun, the world’s fourth-largest exchange is going to list five cryptocurrencies. SIX Swiss Exchange will now list six cryptocurrencies on its exchange. These cryptocurrencies will be sold on a derivative price and will be available to every trader on the Swiss Exchange.
The Swiss Exchange is going to list five cryptocurrencies on its trading list and they are; Bitcoin, Bitcoin Cash (BCH), XRP, Litecoin (LTC) and Ethereum (ETH). All these cryptocurrencies are in the top 10 list of the cryptocurrency market as well. These cryptocurrencies are going to be sold as securities on the exchange.
Currently, the cryptocurrency portfolio of Amun is 50% in Bitcoin, 25% in Ripple and the other 25% across the other three cryptocurrencies.
First ETF Approval
The cryptocurrency community for the past year has been awaiting the announcement of the SEC approval for the VanEck Solidx ETF, but Switzerland has beaten the US financial body to the chase. By being the first to approve an ETF proposal the financial heaven has maintained its status as the favoured country when it comes to FinTech and finance related services.
The SEC in the last year has rejected an ETF application. This particular application was filed by the Winklevoss brothers, for their exchange Gemini. The proposal was rejected because the SEC has problems with the liquidity of funds and deemed it too high a risk.
However, the VanEck SolidX ETF was and is still under consideration. The community had their hopes pegged on this being approved, but the SEC has significantly delayed it. The companies and officials at VanEck and SolidX, however, remain optimistic about its approval.
Switzerland is the first to approve an ETF and this decision will go a long way for the market and community alike. And SIX will be the first exchange in the world to list cryptocurrencies on their trade lists as early as next week.
Read more about ETF:
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
