Swiss cryptocurrency monetary agency Amun AG launched an Alternate Traded Product (ETP) giving traders inverse publicity to Bitcoin (BTC), referre
Swiss cryptocurrency monetary agency Amun AG launched an Alternate Traded Product (ETP) giving traders inverse publicity to Bitcoin (BTC), referred to as 21Shares Brief Bitcoin (SBTC).
As Cointelegraph Japan reported earlier immediately, Amun launched the derivative in query on Jan. 22 on Switzerland’s main inventory alternate, Six Swiss Alternate. The outline of the product on the agency’s official website is as follows:
“The 21Shares Brief Bitcoin ETP (Ticker: SBTC) seeks to supply a -1x return to the efficiency of Bitcoin for a single day. This product obtains quick publicity via borrowing Bitcoin and concurrently promoting it on an execution platform.”
In accordance with its official website, the Six Swiss Alternate has seen 1.94 billion Swiss francs ($2 billion) in working revenue in 2018, 2.88 billion Swiss francs ($2.97 billion) of internet income in 2018 and has 2,594 staff. The alternate additionally claims to have a 70.8% market share of buying and selling within the Swiss Leader Index. Six alternate additionally has 32.four million monetary devices in its database.
First regulated inverse Bitcoin ETP in Switzerland
In a press release asserting the brand new product revealed earlier immediately, Amun’s CEO Hany Rashwan defined that the launch of this ETP is a vital addition to its derivatives. He claimed:
“We have now labored laborious to be able to launch the primary inverse Bitcoin ETP on a regulated buying and selling venue right here in Switzerland. Amun affords an present suite of lengthy funding merchandise for quite a lot of crypto property, nevertheless, the one lacking puzzle was to ship a product to capitalize on unfavourable worth actions.”
The final product in an extended sequence
This ETP is one in an extended sequence of absolutely collateralized and custodied crypto-based monetary derivatives launched by Amun. Earlier, the corporate additionally launched the Amun Crypto Basket Index ETP, Amun Bitcoin, Amun Ethereum, Amun XRP, AMUN Bitcoin Money ETP, Amun Binance ETP, Amun Tezos ETP, Amun Bitcoin Suisse ETP, Amun Bitwise 10 ETP and Amun Sygnum Platform Winners Index ETP.
An Amun spokesperson advised Cointelegraph that — relying on SBTC’s success — the agency could launch extra crypto shorting ETPs in addition to different merchandise reminiscent of leveraged derivatives. The agency’s CEO Hany Rashwan advised Cointelegraph that Amun’s merchandise are regulated and claimed that they’re simple to make use of. Then, he additionally shared his perspective on present merchandise missing within the crypto by-product panorama:
“Crypto is remodeling into an asset class and the demand for derivatives like leverage and inverses is each large and rising quickly. But, the merchandise that exist immediately within the type of choices/futures are constructed largely out of unregulated geographies which dispels institutional traders or are too sophisticated and require numerous administration which is just too sophisticated for retail traders.”
In December 2019, Amin additionally got approval to supply its merchandise to retail shoppers within the European Union, successfully opening entry to crypto publicity to a broader demographic.
Many corporations launch cryptocurrency derivatives because the traders present an growing demand for such merchandise.
In early December, Bitcoin futures open curiosity on digital asset platform Bakkt hit a brand new all-time excessive. Earlier this month, cryptocurrency derivatives alternate FTX launched Bitcoin and reportedly hit $1 million two hours after launch.