Switzerland has approved the first cryptocurrency ETF, with the ticker symbol HODL. This product will track the prices of five cryptocurrencies as an index and will begin trading on the SIX Swiss Exchange next week.
While most investors are waiting on the Van Eck and SolidX ETF decision in the U.S., Amun AG, a crypto startup went ahead and had their own ETF approved in Switzerland, on an exchange called the SIX Swiss Exchange, which happens to be the fourth largest Stock Exchange in Europe ($1.6 trillion market cap). This index fund doesn’t just track the price of Bitcoin, it utilizes the price of XRP, Ethereum, Bitcoin Cash ABC, and Litecoin and will have the ticker HODL and will begin trading next week.
Hany Rashwan, co-founder and chief executive of Amun AG, designed this product for investors who want exposure to the cryptocurrency space but are restricted to only investing in securities or don’t want the hassle of having to deal with the underlying assets. One major benefit of this security is that retail investors across Europe will now be able to allocate a part of their pensions to buying cryptocurrencies (if they choose).
“The Amun ETP will give institutional investors that are restricted to investing only in securities or do not want to set up custody for digital assets exposure to cryptocurrencies. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments.” -Hany Rashwan
As stated earlier, this fund doesn’t just track Bitcoin, it tracks a few other cryptocurrencies too. The index allocations are based on each coins current market cap performance and is automatically adjusted for changes. As of the time of writing, the index is based on 48.13% Bitcoin, 29% XRP, 16.39% Ethereum, 3.74% Bitcoin Cash ABC, and 2.74% Litecoin. For managing the underlying assets, Amun will charge a 2.5% yearly management fee.
For any Europeans, will you be purchasing this index in your pension plan or stock portfolio on the SIX exchange?