Crypto Asset Firm Amun Launches Inverse Bitcoin ETP
Announced Thursday, Switzerland-based Amun has launched the 21Shares Short Bitcoin ETP (SBTC) on Swiss stock market (SIX), an exchange-traded product tracking bitcoin’s price movements inversely.
If bitcoin’s price climbs, traders lose. If it falls, they win.
“If you’ve ever tried trading options or futures, you’ll see that it’s pretty difficult,” Amun CEO Hany Rashwan said during a phone interview. “It's not the simplest thing which is why it's just easier to mention ‘I think bitcoin price will go down, I'm getting to buy this stock.’”
Compared to entering short trade positions on bitcoin – wherein an investor expects the worth to fall and bets against an asset’s value rising by buying and selling an edge on loaned funds – Amun’s Short Bitcoin ETP doesn't require loaned capital.
Rather, the merchandise captures bitcoin’s price movement inversely in one stock purchase like an artificial exchange-traded note (ETN) comprised of short positions. Furthermore, all positions reset at the top of the trading day with performances not rolling over to subsequent day.
Rashwan noted the increase of crypto derivatives, particularly from lightly or completely unregulated exchanges, which are taking over to 99 percent of the bitcoin derivative market’s volume compared to legacy providers like CME Group or ICE’s Bakkt.
Indeed, crypto derivatives platform FTX traded some 2,405 options contracts traded on its inaugural day, Jan. 13, versus 54 options contracts on CME which opened an equivalent day, consistent with financial publication Micky. Options on CME are constructed at 5 bitcoin per contract while FTX allows users to draft their own.
Responding to consumer demand, Rashwan said Amun has positioned itself to supply new sorts of crypto exposure in only a couple of clicks.
“We hope to bring the simplest and most regulated user experience to short or leverage crypto exposure and this is often the primary step towards that vision... You don’t need to find out the way to open and shut the contract. you do not got to affect what a perpetual swap is. Nothing of that kind . you only buy a stock,” Rashwan added.
Amun, with some $50 million in assets under management, offers 10 crypto-based ETP products on Swiss SIX and Boerse Stuttgart. The firm recently garnered approval from the Swedish Financial Supervisory Authority (SFSA) to increase its offering into other European retail markets.