Switzerland is to see the launch of the first ever exchange-traded product (ETP) tracking multiple cryptocurrencies.
As reported in the The Financial Times on Saturday, the country's principle stock exchange, Six, has given the go ahead for the ETP, which is called the Amun Crypto ETP and will go by the ticker symbol "HODL." Trading will start on the Zurich-based stock exchange next week, the FT says.
According to the website of London-based Amun, the ETP will track an index "the top 5 crypto assets in terms of market cap and liquidity" which are currently allocated as: bitcoin (48.69 percent), XRP (25.72 percent), ethereum (17.6 percent), bitcoin cash (5.11 percent) and litecoin (2.88 percent).
The index will not include stablecoins, tokens that are designed for anonymity, illiquid or very new tokens. The firm will charge an annual management fee of 2.5 per cent.
Hany Rashwan, Amun's co-founder and CEO, was quoted by the FT as saying:
He added that the index will also open up crypto assets for retail investors that cannot access cryptocurrency exchanges due to local regulations.
Seed capital for the ETP was provided by trading firms Jane Street and Flow Traders, which will also act as authorized participants the FT adds.
Trading screen image via Shutterstock