Switzerland-based ETP issuer Amun has launched the Amun Crypto Basket Index ETP (HODL SW) on SIX Swiss Exchange. The ETP becomes the world’s first multi-asset crypto index-linked product listed on a major exchange.
The ETP provides access to a diversified portfolio of the largest and most liquid crypto assets.
The product provides exposure to the Amun Crypto Basket Index, which reflects the performance of a diversified portfolio of leading crypto assets.
The index was introduced in September in partnership with MV Index Solutions, the indexing division of ETF provider VanEck.
Mark Rodino, Managing Director & Global Head of Distribution of Amun, said, “We live in uncertain times, and crypto-currencies act as a store of value, protecting against inflation and geopolitical risk. Crypto-currencies are also uncorrelated to traditional asset classes, and their volatility is currently at a record low, but for too long this asset class has only been available to institutional investors in certain areas. Our product changes all that.”
The index utilizes Amun’s quant-driven volatility management methodology to determine the weights of its constituents, helping to manage the volatility associated with less liquid or smaller crypto assets. The weight of each crypto asset is constrained to a maximum cap of 50% and a floor of 3% as of each monthly rebalance.
It currently contains four components: Bitcoin (48.4%), XRP (Ripple) (33.6%), Ethereum (15.4%) and Litecoin (2.7%). Collectively, these four assets account for approximately 75% of the total digital asset universe.
Amun holds the underlying crypto assets in cold storage, equal to 100% of the value of the notes at all times.
Hany Rashwan, Chief Executive Officer at Amun, commented, “We’ve enjoyed the journey to create and launch a reliable crypto index in partnership with the MVIS team. With one purchase, investors can now access 75% of the crypto market and the monthly rebalances ensure we capture the evolution of the asset class.”
He added, “The mission of our company is to make investing in crypto as easy as buying a stock, and the launch of the Amun Crypto Basket Index ETP is a crucial step in this process. It allows investors around the world to access this innovative and exciting asset class in a regulated manner. We also plan to launch more products across multiple geographies, including ETPs that track specific eligible crypto-assets.”
“MVIS is excited to be a part of this ground-breaking initiative,” said Thomas Kettner, Managing Director at MVIS. “The listing of this index now means that investors can easily access via the Swiss exchange a product that provides diversified, passive exposure to the crypto space.”
The ETP comes with an expense ratio of 2.50%.
While the listing of the ETP does offer greater accessibility into the crypto asset market for institutional and retail investors, it must be noted that it is not an ETF nor is it UCITS-compliant.
Regulatory bodies have thus far denied several applications for the listing of crypto ETFs with the US SEC noting that the market is neither mature enough nor sufficiently regulated to fulfil the strict requirements of an ETF.