trading volumes will come from retail

trading volumes will come from retail
Source: iStock / jansucko

Amun AGa Swiss-based digital asset investment company known for its exchange-traded products (ETPs) plans to list them on at least two new European regulated exchanges and believes that the volume of trades will come from retail investors.

Today, the issuer of exchange traded products lists cryptoasset investment products on the SIX Swiss Exchange, BX Swiss is Boerse Stuttgart which provide investors with exposure to bitcoin (BTC), bitcoin cash (BCH), ripple (XRP), binance coin (BNB), ether (ETH), tezos (XTZ), and a basket of digital assets.

Meanwhile, in December, the company received approval to expand its offer of cryptographic products in the European Union.

Laurent Kssis, CEO and Global Head of ETP, said a which Amun intends to "list in at least two European regulated exchange locations where a valid EU Base Prospectus (BP) is required." Most exchanges currently don't accept cryptocurrency investment vehicles, the company will actively lobby, he added.

In the meantime, looking at the activity of the market of the most popular products traded on the stock exchange on SIX on December 13, we can see that Amun Tezos ETP, which tracks the XTZ token, was the third most popular ETP on the Swiss stock exchange with a volume of 3,100 and a turnover of 83,000 Swiss francs. The only two most popular financial instruments were gold-based products.

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While a Friday two weeks before Christmas is not an example of a normal trading day, we can see that the cryptocurrency was traded – in regulated format – even on a not so busy day. In the case of the Tezos ETP, we can attribute the recent price jump trading activity of its token.

However, a total trade volume of CHF 83,000 CHF (USD 84,000) pales in comparison to what XTZ has been trading on cryptocurrency exchanges. According to CoinMarketCap, over 13 million USD of XTZ was traded on the stock exchange on December 13th.

In addition, the average daily trading volume of the ETP Amun Tezos on SIX amounts to 252 contracts at the time of writing. This means that an ETP worth less than USD 10,000 is traded on the Swiss stock exchange.

The image doesn't look very different for the Amun Bitcoin ETP, the world's first physically supported bitcoin exchange product. The bitcoin product traded on the Amun exchange has had an average trading volume of 1,328 per day since its launch. At Friday's closing price of USD 37.11, this would equate to around USD 50,000 of bitcoin ETP traded at the SIX exchange per day. By comparison, the volume of 24-hour bitcoin exchanges on December 13 amounted to over $ 17 billion.

The most popular Amun ETP by trading volume is the Amun Crypto Basket Index ETP, which carries the "HODL" ticker. The basket index tracks the five largest cryptocurrencies by market capitalization, which includes BTC, ETH, XRP, BCH and LTC. The average trading volume of the ETP from the outset was 13,713, the volume of which declined significantly in the second half of 2019. 13,713 at Friday's closing price of 16.49 USD, would be equivalent to a volume of average daily exchanges of around 225,000 USD.

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Bitcoin ETP issuer Amun: trading volumes will come from retail 102

Therefore, it seems that, for now, investors in cryptocurrencies prefer to invest in digital assets directly through dedicated cryptocurrency exchanges and only a small number of institutional investors are shyly entering this new class of digital assets.

“Switzerland is by far the most competitive market for cryptocurrencies. All brokers, brokers and banks can sell cryptocurrencies directly to their retail clients. Our ETPs were designed from the outset for institutional clients as they cannot purchase cryptocurrencies directly. Adoption from them is still nascent but growing, "explained Kssis.

He stressed that with their validated European BP they are no longer limited to institutional investors only and the company is actively exploring all European countries to promote their products.

"So, the new listing admission and retail access is a key goal / result for Amun. Remember, the company is only one year old and has listed ten products to date! We can easily see five more new products and multiple-currencies double lists. Volumes will come from retail, so it is critical that we are positioned locally! "said Kssis.

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Exchange traded products are regulated investment vehicles that are bought and sold on the stock exchange like shares. In the case of Amun ETPs, the underlying assets are currencies and digital tokens. The idea behind these investment products is that they allow both retail and institutional investors to gain exposure to cryptocurrencies in a fully regulated way without having to deal with the problem of storing cryptoassets.

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