Major Switzerland’s stock exchange SIX has hinted that cryptocurrency-based exchange-traded product (ETP) for Ripple XRP branded as “Amun Ripple XRP (AXRP)” has its first trading day to be tomorrow, Tuesday, 2nd April, 2019.
The ETP, which will track the price of Ripple XRP, the 3rd largest cryptocurrency by market cap, is the first XRP ETP.
Not long, Hany Rashwan, co-founder of the Switzerland company Amun AG, confirmed to CoinDesk that the firm has been granted approval from SIX to issue XRP-based ETP.
Hany Rashwan made known that his firm is launching the first XRP ETP in the next few month. However, according to information obtainedon SIX website, the ETP is to begin trading tomorrow, 2nd April 2019.
According to him, Amun AG has been granted the approval to issue ETP liked to Litecoin (LTC), bitcoin cash (BCH), litecoin (LTC), EOS, and stellar lumens (XLM).
It is not clear when the products would be launched, however, Amun AG intends to list all the accepted and approved crypto ETPs on SIX platform before 2019 ends.
With its decision to help the crypto space by making buying and selling of crypto easy for people the same way stock is easy for every, Amun has gotten nothing less than $4 million in funding to be able to launch more channels for crypto ownership. For Amun, the first five cryptocurrency is not the end, in fact, it signals the company’s readiness to increase crypto adoption in a very short time.
Amun Ripple XRP (AXRP) Is Fully Collateralised
The enforced listing rule of SIX is ETPs must be collateralised. The reasons for this is that ETPS are said to be inert investment instruments without active trading ideas. These ETPs are to be approved and monitored by the Federal Financial Market Supervisory Authority (FINMA), Switzerland’s market regulator.
In this wise, everything about ETPs are to meet the requirements laid down. One of them is that investors’ protection must be taken into consideration.
According to Rashwan, every of Amun’s crypto ETPs is to be backed and collateralised an equal amount of crypto assets.
He said: “The collateral also has to be kept at an independent qualified custodian. The calculation of the price is checked multiple times a day by several parties.”
The ETPs are collateralized with Kingdom Trust, a crypto and traditional assets custodians registered with the Securities Exchange Commission in the U.S.