Swiss SIX Exchange is elaborating itself to register a growth in its platform. The world’s largest stock exchange is now enlisting a new cryptocurrency exchange-traded product, or ETP.
Mattia Rattaggi, chairman of the FiCAS Board, explained that the issue price of the BTCA was driven by the desire to accommodate and facilitate market liquidity, retail concerns and portfolio management rebalancing requirements.
Rattaggi noted that investors now have a new option of investing money into a crypto ETP that discharges their direct involvement, comparing the BTCA to traditional discretionary portfolio management. Rattaggi added that the new product should be a good fit for the nascent crypto market:
“Time will tell how this innovation will impact the industry. Arguably, an actively managed, discretionary ETP may be better suited for the still nascent cryptocurrency markets, because it focuses on active risk management more than in a systematically-driven passive ETP.”
The list of cryptocurrencies authorized for trading is defined and driven by SIX Exchange, the Rattaggi said, “We have chosen coins that have their own blockchain, high market capitalization and a large liquidity pool.” He noted that the ETP does not include privacy coins.
In traditional finance markets, an ETP is a type of security that is priced derivatively and trades based on investment tools such as a commodity, a currency, a share price, or an interest rate. Opposed to crypto exchange-traded funds, or crypto ETFs, crypto ETPs are always 100% backed by the assets they are tracking.