Bitcoin ETF Approval, Supported By Switzerland’s Crypto ETP?
Latest reports from the Financial Times announced that the main stock exchange in Switzerland, SIX Swiss Exchange will list the world’s first ETP. This is backed by Swiss startup, Amun AG.
It will be listed under the index HODL, and it’s set to track five major coins: Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
Amun’s co-founder and chief executive Hany Rashwan said:
“The Amun ETP will give institutional investors that are restricted to investing only in securities or do not want to set up custody for digital assets exposure to cryptocurrencies. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments.”
Can the crypto ETP increase the chances of Bitcoin ETF approval?
CCN raised this question, and they also answered from the beginning with a simple “no.”
The Amun ETP concept is similar to an exchange-traded fund (ETF) because it allows both institutional investors and accredited retail traders to make investments in crypto without involving custodians and dealing with additional regulatory issues.
It’s true that the approval of a crypto ETP by the main stock exchange of Switzerland is a huge achievement for the whole crypto industry, but an ETP already exists in the US Market.
This ETP is in “the form of Grayscale Investment’s Bitcoin Investment Trust, and investors in the local market can purchase investment vehicles that represent the value of BTC,” CCN says.
The SEC has already rejected more Bitcoin ETF proposals and said that the crypto exchange market is not mature enough to handle an ETF.
In order to increase the chances of a Bitcoin ETF approval, companies that apply with the SEC have to bring viable solutions that can solve the SEC’s main issue, the one saying that the crypto market and the futures market are not enough to determine the real price of BTC.
On the other hand, the latest speculations are that Bakkt’s futures market launch could be sufficient to convince the SEC, but still, the potential impact of Bakkt still has to be seen.