Cryptocurrency ETF Approval: The First One Goes Live this Week

The U.S. investment watchdog, the Securities and Exchange Commission (SEC) has repeatedly turned down Exchange-Traded Funds (ETF) seeking its approval. However, while the U.S. regulators are dragging their feet, their Swiss counterpart seems to be setting the pace. The global cryptocurrency community will welcome the first-ever ETF on a traditional stock exchange. A crypto startup, Amun AG, achieved this feat, which will start trading on the SIX Swiss Exchange. With a market cap of $1.6T USD, the SIX Swiss Exchange is the fourth-largest stock exchange in Europe.

Official statement

The CEO of Amun, Hany Rashwan, was full of praise for the Swiss regulator. In addition, the chief executive expressed the hope that the product would open up the space to propel cryptocurrency into the mainstream. Similarly, Rashwan noted that the trading instrument will attract institutional investors who shy away from the volatile and unregulated crypto market. The Egyptian entrepreneur added that the approval will allay the fears of retail investors who worry about “local regulatory impediments.”

Additionally, the CEO disclosed that his team will offer an index basket that exposes traders to various cryptos. Rashwan, who is a Columbia University graduate, quipped that they will add more trackers to cryptos in the near future.

How Amun AG offers its Crypto Exchange-Traded Fund (ETF) 

According to Amun AG, the product will trade as HODL. Also, it will track some of the biggest cryptocurrency by MCAP, such as BTC, ETH, LTC, BCH and XRP. To ensure that investors make the most of their investments, Amun AG designed the product to automatically allocate client investments to the best performing cryptos. Indeed, this is to help guarantee the profitability of such investments.

More importantly, at press time, the product comprises about 50% BTC and 30% XRP, making it one of the topmost performing cryptocurrencies this year. What’s more? The altcoins share the rest of the 20%.

In the United States

In the United States, the unending saga of approving an ETF worsens. Amun AG had disclosed earlier that it settled for Switzerland after considering over 23 countries. Indeed, it remains unclear if the cryptocurrency startup took the U.S. into consideration given that U.S. SEC has yet to give a definite definition to the concept of an ETF.

Therefore, while the global cryptocurrency space continues to wait for the SEC to give a regulatory green-light to the EFT, the accomplishment from faraway Switzerland is worth celebrating. Basically, the SEC refused to grant a go-ahead to ETF proposals, citing fraud and price manipulation.

 

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The post Cryptocurrency ETF Approval: The First One Goes Live this Week by Ifeanyi Nwaokorie appeared first on BittPress.