Swiss Fintech company Amun AG has launched a new exchange-traded product on the leading Swiss stock exchange SIX that will be tracking the price of ten underlying digital assets.
As detailed in a press release published by Bitwise Asset Management, the new ETP will be benchmarked against a crypto index provided by Bitwise Index Services a subsidiary of Bitwise Asset Management. This will be the fifth ETP to be listed on the SIX exchange, the first four still being provided by Amun AG.
As opposed to the first four, which are all based on single underlying assets, the new ETP dubbed ‘The Amun Bitwise Select 10 Large-Cap Crypto ETP’ will be tracking several underlying assets chosen according to particular criteria.
The most important requirement to fulfill to qualify as an underlying asset is to be among the biggest cryptocurrencies by market cap. Then the ETP excludes any privacy-focused crypto, so coins such as Monero, Zcash, and Dash are excluded.
The cryptocurrency should also not be tied to any third-party platform. This requirement excludes cryptos such as Binance coin [BNB] and Tether [USDT] stablecoin, both dependent on their respective Binance and Tether companies. Nonetheless, Tether being a stablecoin with expectedly unchanging value would not make a good speculative investment asset due to its value stability.
In addition, the release states that “All assets in the index must be approved to serve as the underlying for an ETP by SIX, the Swiss Exchange, and must be both supported by appropriate market makers and available for custody at leading institutional custodians.”
According to the release, only 8 assets have fulfilled these requirements and have been included in the basket of assets to be tracked by the ETP. These include Bitcoin, the leading cryptocurrency by market cap, which will also make the bulk of the weight of the basket of assets at 67.8%.
Ethereum also makes the cut with a weight allocation of 11.5%. Ripple’s XRP comes in a close third contributing 8.33% of the total weight. Bitcoin Cash, Litecoin and EOS will represent 3.52%, 3.47%, and 3.36% respectively. Stellar’s Lumens [XLM] and Cardano’s ADA coins make the list contributions to the weight of the basket with 1.1% and 0.9% distributions respectively. The basket will be reconstituted and rebalanced on a monthly basis.
In a statement, Bitwise’s Global Head of Research Matt Hougan said:
“We are thrilled to be working with Amun to help non-U.S. investors gain diversified exposure to the crypto markets.” He also added that “The Index is carefully designed to capture a broad array of crypto assets while accounting for many of the unique constraints presented by the current cryptocurrency ecosystem.”
Amun AG’s CEO Hany Rashwan was equally as excited saying in a statement that:
“We are thrilled to partner with Bitwise to bring the most broadly diversified crypto ETP to investors in Switzerland […] Bitwise is the global leader in crypto indexing, and we are excited to launch a product that builds on their expertise.”