Cryptocurrency ETP by Anum Crypto Basket (HODL) has been approved by Swiss regulators and trading started earnestly today. The firm offering the ETP is Anum, a Fintech venture based in Switzerland. The instrument started trading today under the ticker symbol HODL on the SIX Swiss Exchange, one of the largest exchanges in Europe. The crypto basket by Anum has about half of its assets committed to Bitcoin whiles the remaining half is shared among XRP, Litecoin and Ethereum.
This is coming off the back of previously rejected Bitcoin ETF proposals in the US market. This will mean that it is the globe’s first ETF-like security trading on a major exchange. This ETP will let retailers and institutional investors get exposed to the cryptocurrency market.
What is an ETP?
ETP stands for Exchange Traded Products, and it is a derivative investment that is traded on security exchanges. ETPs are usually valued on the back of another investment instrument such as a commodity or currency. And in the case of Anum Crypto Basket Index (HODL), the investment value will be based on cryptocurrencies.
Increasingly, there have been moves to have cryptocurrencies play on mainstream exchange platforms. This is what some crypto players believe will help drive adoption. It is however in contradiction with another section of the market which believes that frolicking with mainstream market might lead to regulation from centralized authorities – but this remains contentious.
The parent company of the New York Stock Exchange, Intercontinental Exchange has recently made mention of likely launch of Bitcoin Futures on their Bakkt platform. Sources say that this Bitcoin Futures on Bakkt is likely to launch in January 2019.
A number of such market moves are being made and we will get to see how the market responds in accordance.