Switzerland’s Zurich-based stock exchange SIX Group has launched the second of its five proposed crypto asset-backed Exchange Traded Products the Ethereum ETP. Going by the ticker symbol AETH the ETP will be managed by the Swiss startup Amun AG (hence the ‘A’ in the ticker symbol).
The AETH launched bared a week after SIX also started trading Bitcoin-backed ETP (with ticker symbol ABTC) also managed by the Amun Group. ABTC launched on the 26th February while AETH launched on the 5th of March.
SIX plans on listing ETPs backed by the top five leading cryptocurrency assets including Bitcoin, Ethereum, Ripple’s XRP, Bitcoin Cash and Litecoin.
All these assets also make up the Amun Crypto Basket Index (HODL5) comprising of the assets in the following proportions: Bitcoin – 49.39%, Ethereum – 16.58%, XRP – 27.2%, Litecoin – 3.87% and Bitcoin Cash – 2.96%. Amun will be charging a management fee of 2.5% for the two assets that have already been listed on the SIX exchange with a similar fee expected to be charged for managing the other three ETPs once they launch.
According to the SIX Group website, the Ethereum ETP will be provided by Amun with Flow Traders B.V. providing AETH with the market making services. In a statement made by co-founder and CEO of Amun AG, Hany Rashwan, he says that,
“with both HODL for the index and ABTC/AETH for the single coin, we have given investors around the world access to this innovative and exciting asset class through a regulated exchange and the traditional financial market. We also plan to launch more products across multiple geographies.”
As expressed by Rashwan, the ETPs are highly regulated products and in order to protect the investors, Amun holds the cryptocurrency in cold storage backed in a 1:1 ratio against the notes at all times. Amun also claims to have taken the highest security measures to protect against any losses or theft of assets on top of the aforementioned cold storage.
