Swiss company Amun AG launches the world’s first inverse Bitcoin ETP

  • The Swiss company Amun AG has launched the world’s first inverse Bitcoin ETP on SIX, which allows investors to profit from a falling Bitcoin price.
  • In addition, Amun AG is aiming for further expansion on at least two other European exchanges.

The Swiss company Amun AG has launched its eleventh Bitcoin ETP (Exchange-traded Product) yesterday. As stated in an official announcement, the new crypto-ETP differs significantly from the previous products. The new “21Shares Short Bitcoin ETP” (SBTC) allows investors to go “short” while the other ETPs so far only allowed investors to take a “long” position.

The SBTC is the first inverse product of its kind, allowing investors to bet on falling Bitcoin prices. However, unlike short selling, which usually involves high credit costs (or margin), the inverse ETP is rolled back at the end of each day. The performance is not carried over to the next day.

It is therefore ideally suited to benefit from short-term price movements of Bitcoin. With the 21Shares Short Bitcoin ETP, investors can immediately and safely bet on falling negative price movements of Bitcoin. SBTC thus represents a natural extension of the existing crypto ETP product range and offers investors greater choice, enabling them to better counter the high volatility of the crypto market.

Hany Rashwan, Chairman of the Board of Amun AG said in the press release:

We have worked hard to be in a position to launch the first inverse Bitcoin ETP on a regulated trading venue here in Switzerland. Amun offers an existing suite of long investment products for a variety of crypto assets, however, the one missing puzzle was to deliver a product to capitalise on negative price movements.

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The platform will charge traders of the instrument a 2.5 percent administration fee for each trade.

Amun further expands its crypto-ETP portfolio

The Swiss Fintech company has become a giant in terms of the number of crypto-ETPs. With the new SBTC, Amun now has a total of 11 listed crypto-ETPs. These are primarily listed on the Swiss SIX exchange, but some are also listed on the BX Swiss. The ETPs are bound to Bitcoin, Ethereum (ETH) and the XRP token, among others. Furthermore, Amun also owns a Crypto Basket Index ETP (HODL), which is composed of different cryptocurrencies.

As of today, Amun is trading all ETPs under the name 21Shares, in reference to Bitcoin’s fixed offer of 21 million BTC. Looking ahead, Amun plans to list its ETPs on at least two other European exchanges by the end of 2020. Amun AG was already in the headlines in December 2019 after the Swedish Financial Supervisory Authority (SFSA) approved the company’s base prospectus. This step is intended to promote the development and further expansion of the company into new European markets.

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About Author

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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