First series of physically backed ETPs solve cryptocurrency custody issue while allowing wide range of investors to invest in cryptos as easily as in stocks
Amun AG, a Swiss fintech aiming to facilitate access to crypto-asset investments, has recently launched an ETP (exchange-traded product) tracking Ethereum, the second major cryptocurrency globally after Bitcoin, the Amun Ethereum ETP (ticker AETH).
This launch follows the listing of HODL, an ETP representing an index of the top five cryptocurrencies, in November 2018 and the listing of ABTC, an ETP tracking Bitcoin, in February 2019. All three ETPs were listed on the SIX Swiss Exchange.
Hany Rashwan, Co-Founder and CEO at Amun, explains: “At Amun, we aim to make crypto investing as easy as buying and holding as a stock. Launching these ETPs is a unique way to giveaccess to a wide range of investors around the world to an innovative and exciting asset class through a regulated exchange.”
The specificities of these ETPs compared with other financial products on cryptocurrencies are the following:
- Amun ETPs are physically backed, a feature that no other provider has been offering so far. So investors can now own cryptocurrencies via products listed on regulated exchanges without having to worry about keeping their private keys secure, the number one concern in the crypto space; and
- Amun ETPs have the same characteristics as physical gold ETPs. Exchange-traded products were launched nearly 30 years ago to follow the equity market, and have been expanding since then to all other asset classes, from commodities to bonds. Cryptocurrencies represent a new, promising asset class and, as such, a potential area of growth for the ETP industry.
The Amun Ethereum ETP is a fully collateralized product which is denominated in US dollars and has an annual investor fee of 2.5% that includes custody, insurance, and re-balancing fees.
Amun announced earlier this week having completed its first funding round, bringing on board a number of experienced industry figures including Adam Draper, Founder of Boost VC, Graham Tuckwell, Founder of ETF Securities, Greg Kidd, Co-Founder of Hard Yaka, as well as four family offices.