Bitcoin Suisse, a Swiss crypto broker, and Amun AG, a FinTech firm have joined hands to launch a new exchange-traded product (ETP). This product will trade on the country’s stock exchange, SIX. An industry media outlet unveiled this news through a report on October 3. Per the publication, the ETP comprises both ETH and BTC.
According to the report, the ETP is trading under the ticker ABBA and is already live on SIX exchange. It is set to let Swiss investors add BTC and ETH investments to their portfolios. ABBA comprises 90 percent bitcoin (BTC) and 10 percent ether (ETH). Reportedly, it depicts the most recent crypto offering to go live on SIX. The exchange already has dedicated BTC, ETH, and BCH among other ETPs.
In the report, Amun AG said,
This physically-backed ETP is fully collateralized, which means that for every bitcoin and ether bought for the ETP, there will be an equal corresponding crypto amount stored securely in the Bitcoin Suisse Vault,
Hany Rashwan, the co-founder and CEO of Amun said the product is designed for the Swiss by the Swiss. According to him, ABBA seeks to meet the growing need for a Swiss Franc (CHF)-denominated ETF.
It represents a unique way for investors to add the two major cryptocurrencies globally to their portfolio via a regulated product listed on SIX and backed by a Swiss-based custodian.
SIX’s Growing Interest in the Crypto Sector
SIX exchange opened its doors to crypto-based financial tools in the past year. It did this by listing the first multi-crypto-based ETP in the world at that time. SIX listed the ETP under the index HODL, and it comprised five leading crypto coins. These are BTC, XRP, ETH, BCH, and LTC.
Listing HODL was part of a wider goal of adopting the crypto sector. Since then, the exchange has made significant steps toward achieving this feat. For instance, the exchange is gearing up to roll out a blockchain-powered version of its platform. Dubbed SDX, the platform is set to trade crypto and will allegedly be fully-regulated.
However, SIX postponed the launch of SDX and released its prototype instead. The full launch of the platform is slated for Q4 2020.
Commenting on the purpose of SDX, its chairman, Thomas Zeeb said,
SDX is a testament to the innovative nature of the Swiss stock exchange and the foresight of its shareholders – we are combining existing market technology with revolutionary new technologies to create the market of the future.
Thomas Zeeb, the head of SDX said,
Ultimately we want to be able to tokenize existing securities — equities, fixed income, funds. Maybe the token will eventually replace the share one day.
Do you think SIX’s bullish outlook on the crypto sector will help Switzerland reach its goal of becoming the first crypto and blockchain hub? Let us know in the comments below.