ETH Going Institutional? Largest Swiss Exchange SIX Launches Ethereum ETP

On March 5, leading Swiss stock exchange SIX Swiss Exchange launched an Ethereum (ETH) based exchange-traded product (ETP), according to the SIX Group website.

The launch of the Ethereum ETP comes just over a week after SIX launched a Bitcoin ETP, and after the launch of the HODL5 fund – an index of 5 leading digital assets – at the end of 2018. All of these financial products, including the newly listed Ethereum ETP, were issued by the Swiss digital currency startup, Amun AG.

Is ETH Joining BTC as an Institutional Asset Class?

The SIX Swiss Exchange Ethereum ETP will be listed under the symbol AETH, while the Bitcoin ETP is listed as ABTC. Both of these financial products are available to institutional traders where they are traded against the US dollar (USD).

While an ETP is not as highly anticipated as an ETF, they both provide both regular and institutional investors with the opportunity to dabble in cryptocurrency investments without having to take physical possession of digital assets.

While the launch of these crypto ETPs is a good sign of institutional adoption of cryptocurrencies, it’s not on the same level as the adoption of a crypto ETF. The ETPs launched by SIX do not need the same approval as an ETF and are therefore not considered to be as bullish a sign for crypto.

ETFs must be approved by the Securities and Exchange Commission (SEC) in the US, or FINMA in Switzerland. This level of approval is a big deal, as it would signify a country officially considering Bitcoin or Ethereum as an asset class to the point where institutional investors and others would feel comfortable investing in.

However, both the SIX Bitcoin ETP and Ethereum ETP are a great step towards the cryptos becoming listed an institutional asset class, as investors can now trade and settle these products like shares on Switzerland’s largest stock exchange.

Is the SIX Swiss Exchange Leading in Crypto Adoption?

Switzerland’s largest stock exchange, SIX, may be the world’s leading traditional stock exchange in terms of crypto-friendly trading products, as they are the first to list crypto Exchange Traded Products (ETP).

Back in November 2018, SIX launched the HODL5 ETP, which is a basket of 5 major cryptocurrencies, including Bitcoin (BTC) accounting for about half of the ETP’s assets, Ethereum (ETH) accounting for 16.7%, Ripple (XRP) accounting for 24.4%, Bitcoin Cash (BCH) accounting for 5.2%, and Litecoin (LTC) accounting for 3%.

Now, in addition to the HODL5 ETP, both Bitcoin and Ethereum have their own individual ETPs listed on SIX. Therefore, traditional investors can easily be introduced to the nascent asset class while trading in the comfort of their traditional stock exchange environment.

What do you think the SIX Swiss Exchange will launch next? Will they attempt to get a Bitcoin ETF approved? Let us know what you think in the comment section below.

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