The crypto asset firm Amun has listed a new financial product, which is an inverse Bitcoin (BTC) exchange traded product (ETP), with the Swiss Stock Exchange (SIX).
The ETP is tracking BTC prices inversely and is called the 21Shares Short Bitcoin ETP (SBTC). The announcement about its launch has been made on Thursday. Traders who predict BTC prices will be able to use it and win if the price of the stablecoin falls, whereas if it climbs, they will lose. This is what Hany Rashwan, the CEO at Amun, had to say in an interview about how predicting the BTC price works:
“If you’ve ever tried trading options or futures, you’ll see that it’s pretty difficult. It's not the easiest thing which is why it's just easier to say ‘I think bitcoin price will go down, I'm going to buy this stock.’”
BTC Price Movement Captured Inversely
The fund is capturing BTC price movement inversely when a stock is purchased, just like it does with a synthetic exchange traded note (ETN) that is made of short positions. When the trading day is over, the positions reset and performances don’t roll over to the following day. Rashwan observed crypto derivatives have risen, especially the ones from exchanges that are lightly or not at all regulated and occupy 99% of the BTC derivative market volume.
Amun to Deliver New Types of Crypto Exposure
The crypto derivatives platform FTX traded on January 13, the day of its inauguration, 2,405 options contracts. That’s much more than the 54 options contracts traded on CME in the same day. While CME options are at 5 BTC per contract, FTX allows its users to make their own draft.
In an attempt to respond to consumers’ demands, Amun will deliver new types of crypto exposure with only a few clicks. The Switzerland-based company has in management $50 million in assets and offers 10 crypto ETPs on Boerse Stuttgart and SIX. Recently, it got approval from the Swedish Financial Supervisory Authority (SFSA) to expand to other retail markets in Europe.