HODL5 On Swiss Exchange

Dawid Paluch
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First Exchange-Traded Fund (ETF) based on cryptocurrencies index will be enlisted on SIX Swiss Exchange, a Switzerland’s stock exchange.

In July, the Swiss exchange said that it is open to cryptocurrencies. Now, it will enlist the first ever ETF.

Faster than Bitcoin

From months now, Bitcoin ETF has been trying to go public on Cboe, Chicago based exchange. So far, the attempts have come to nothing.

An exchange-traded fund, or ETF, is a security means that tracks an index of the stock, a commodity, bonds, or a basket of assets. ETF differs from mutual funds. It shares trade like a stock on an exchange. The fund price changes throughout the day as they are bought and sold.

Amun, a Swiss startup, created stock ticker called HODL5 which will be available on SIX Exchange in less than a week.

Its price will be based on an index created from 5 cryptocurrencies’ rating. Bitcoin’s (BTC) rating will make 50% of the index value, Ripple (XRP) will make 30% and remaining 20% will be provided by the combined rating of Ethereum (ETC), Bitcoin Cash (BCH, Bitcoin ABC after hard fork) and Litecoin (LTC).

A fund like a stablecoin?

What differs HODL5 from other funds? The ETF is backed up by assets. Similar to stablecoins in crypto industry, HODL5 will buy as many cryptocurrencies as many assets it will have.

One-year cost of the fund equals 2,5%.

HODL5 is often categorized as ETP (Exchange-Traded Product).

The FiNMA, a Swiss financial market authority has allowed HODL5 to go public.

Image by Denis Linine / shutterstock.com

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