Amun AG, the Switzerland-based leading fintech firm, has announced the news about the launch of a new exchange-traded product or ETP on the globally reputed cryptocurrency exchange, SIX. The product is branded by the name of 21Shares Short Bitcoin ETP and has been designed to cater to the requirements of the traders who opine a negative trend in Bitcoin price.
According to the latest official reports and live bitcoin news, the new ETP will aid investors in tracking Bitcoin price movements in the opposite direction or precisely inversely. This will allow the investors to get accurate price movements of Bitcoin in both directions. In simple words, if the price of Bitcoin surges, the investors bear a loss and if the Bitcoin rise faces a downfall, the investors earn profits.
quoted Hany Rashwan, CEO of Amun.
Amun’s new ETF allows investors to trade without requiring loaned capital, which is a necessity for entering short trade positions on Bitcoin. Similar to a synthetic exchange-traded note constituted of short positions, the ETF tracks Bitcoin price movement inversely during each particular stock purchase. Also, the positions recorded on one day are not carry forward the next day.
Rashwan bragged about the sudden increase in the popularity of crypto derivatives channelized by partially or completely unregulated exchanges. He added that Amun had streamlined the operational capacities for enriching the user experience in the most convenient manner. Amun, which has a whopping $50 million in assets under management, provides 10 digital currency-based ETP offerings on the SIX exchange and Boerse Stuttgart. The firm is all set to explore more European markets after acquiring a license from the Swedish Financial Supervisory Authority.
Rashwan added,
An ETF is a security whose value is directly proportional to other investment offerings to which it is benchmarked, like currencies, commodities, or digital currencies. The pricing of ETF depends on the assets held.