Amun AG launched its sixth crypto-based ETP on Six Swiss Exchange. The product tracks the price of BCH and was seeded by Roger Ver with more than 25,000 BCH.
On July 5th, Zurich-based Amun AG has launched its next exchange—traded product (ETP), this time tracking the performance of Bitcoin Cash (BCH). The Amun Bitcoin Cash ETP now lists on the SIX Swiss Exchange under the ticker ABCH.
Hany Rashwan, Amun Co-Founder and CEO, commented: “We are delivering our strategy, which is to provide investors with the wider product suite in the crypto-assets space, easily available on one of the most reputable market places, the Swiss Exchange. Thanks to this product, investors can now easily add Bitcoin Cash (BCH) to their portfolio.”
ETPs are not funds in legal terms; investors should read the prospectus
Exchange-traded products (ETPs) are types of securities that track an underlying asset. That can be an individual security, an entire index, or other financial instruments. Hence, if the price of the underlying asset changes, the price of the ETP will move as well.
As ETPs are listed on exchanges just like stocks, their prices can fluctuate on an intraday basis. On the contrary to mutual funds, they are not actively managed and usually come with lower fees.
The term ETP is an umbrella term and includes a wide range of exchange-listed products. 97% of all ETPs are exchange-traded funds (ETFs). However, it is important to note that not all ETPs are funds, and thus they might fall under different regulations.
SIX Swiss Exchange clarified that “ETPs are collateralized, noninterest-earning bearer debt securities which replicate an underlying (generally from the commodities sector), either on a regular or leveraged basis. Like ETFs, they trade in a multi market-making segment, but in legal terms, they are not funds.”
It’s essential that investors understand the difference. ETPs that are not classified as funds and may use financial engineering that can also include the use of borrowed money (leverage) to magnify returns, meaning investors also take higher risks. In any case, it pays off to take a look at the securities prospectus and understand what the security entails.
The prospectus of ABCH is available here.
ABCH’s performance is directly linked to Bitcoin Cash without leverage
The ABCH is a fully collateralized product, meaning Amun holds the underlying crypto assets in cold storage equal to 100% of the value of the notes at all times.
It is denominated in U.S. dollars and has a plain vanilla structure with performance directly linked to Bitcoin Cash without leverage. ABCH has an annual investor fee of 2.5%, which includes re-balancing fees, insurance, and custody.
Bitcoin.com CEO Roger Ver has seeded the product with 25,000 BCH, which is more than $8 million as of today.
He explains the narrative behind his investment, “As Bitcoin Cash is becoming a game changer in the crypto space and beyond, I believe Amun has the credential to carry out our objective – global adoption of Bitcoin Cash. We are confident that our investment in the new Amun BCH ETP will set the example and drive more investors to join the growing community which believes in the success of Bitcoin Cash.”
SIX Swiss Exchange a leader in crypto ETP listings
ABCH is already the sixth ETP Amun has launched on SIX, making SIX a global leader in terms of crypto ETP listings.
Besides ABCH, Amun has listed the following ETPs: The Amun Bitwise Select 10 Large Cap Crypto Index ETP(KEYS) covers the top 10 cryptocurrencies; the Amun Crypto Basket Index ETP (HODL) covers the top 5. The other three ETPs track Bitcoin (ABTC), Ethereum (AETH), and Ripple (AXRP).