Switzerland’s Six Exchange launched a new Exchange Traded Product (ETP), Amun Ripple XRP (AXRP) on 2nd April 2019. The management fees charged by the firm for trading these ETPs is 2.5%.
Amun AG is the Swiss Company with offices in Zurich and New York that tracks the price of the ETPs for the Six Exchange.
Revisiting Exchange Traded Products (ETPs)
An Exchange Traded Product is financial security which derives its price from other underlying assets. It can be traded on the traditional stock exchange like any other stock or commodity. Intra-day orders of the ETPs can be also be placed.
The Exchange Traded Products on the Six Exchange are fully collateralized, i.e., the trades are backed by the actual assets; in this case XRP tokens. The Exchange Traded Products can not only be used to place intra0day orders but also to develop other financial products on it.
Hany Rashwan, the CEO of Amun AG noted that:
“We seek to create an easy, safe, and regulated way for investors to access the crypto asset class,”
Performance of Other Crypto-ETPs
Amun Ripple XRP (AXRP) is the fourth ETP based on cryptocurrency released by Amun AG on the Six Exchange; Amun-crypto basket (HODL), Amun Ethereum ETP (AETH) and Amun Bitcoin ETP (ABTC) were published before the XRP ETP in 2018.
The Exchange Traded Products based on cryptocurrencies have performed better than traditional ETPs on the Six Exchange.
Hany Rashwan recently sent a tweet highlighting the increased daily trading volume of the cryptocurrency based ETP on Six Exchange. Rashwan’s Tweet:
The first, second, *and* third top traded exchange-traded products on the
@sixgroup Swiss Stock Exchange today have one thing in common: they’re all issued by @AmunAG. #ToTheMoon #Switzerland #CryptoValley
The addition of an ETP based on XRP will act as a massive push of positive sentiments for the XRP traders. The price of XRP at 13: 00 hours UTC on 2nd April 2019 is trading at $0.332. The price of XRP has maintained stability for long in the $0.29 – $0.32 range. It also trading about 10% lower since the beginning of the year, the doubts around ‘securitization of XRP’ had probably kept the price at bay. Hence, an ETP on a regulated exchange will surely restore the investor confidence in XRP.
Do think other platforms will also use the Amun AG Exchange Traded Products? What effect will it have on the crypto-markets? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com