Switzerland-based fintech firm Amun AG has launched an inverse bitcoin exchange-traded product (ETP) that allows traders to short the flagship cryptocurrency and “capitalize on negative price movements.”
According to Amun’s announcement, the new ETP is called the “21 Shares Short Bitcoin ETP (SBTC)” and is listed on the Swiss stock exchange SIX. The inverse ETP tracks bitcoin’s price movements inversely, which means that if BTC’s price climbs traders lose, but win if it falls.
Speaking to TheBlock, Amun’s CEO Hany Rashwan said that the ETP doesn’t need borrowed capital, compared to shorting the cryptocurrency via derivatives. The ETP is reportedly reset at the end of each day and performance isn’t rolled over to the next one, which means it’s “ideally suited to capture short term price movements of bitcoin for a short recommended period.”
Rashwan pointed out the SBTC is the “world’s first” inverse cryptocurrency ETP, and added that there are more products to come:
We are starting with a simple inverse product, but more product types and strategies are coming.
Amun currently manages a total of $55 million in client assets, and has a total of 11 cryptocurrency ETPs listed on stock exchanges. Among them there are ETPs letting investors gain exposure to major cryptocurrency like bitcoin, ether, XRP, and Binance’s BNB token.
For the SBTC ETP, Amun charges a management fee of 2.5% a year. As CryptoGlobe reported, late last year the Switzerland-based firm got regulatory approval to offer its cryptocurrency ETPs in the European Union.
Exchange-traded products are a type of securities that track the price of an underlying asset, index, or another financial instrument. Amun’s cryptocurrency ETPs let investors gain exposure to various top cryptos without having to custody them and manage private keys.
Featured image via Pixabay.