Switzerland’s principal stock exchange SIX Swiss Exchange is listing a new bitcoin exchange-traded product (ETP). The BTCA index, otherwise known as the “Bitcoin Capital Active ETP (BTCA),” is different from other crypto ETPs exchanged on SIX because it’s an “actively managed” cryptocurrency ETP.
SIX Swiss Exchange, based in Zurich is one Switzerland’s most popular stock trading platforms and the exchange allows investors to obtain securities like stock options, derivatives, and Swiss government bonds.
SIX has been offering crypto infused exchange-traded products (ETP) for quite some time now. This week the exchange revealed a new index called the BTCA or “Bitcoin Capital Active ETP” which was registered by FiCAS, a Switzerland-based investment manager.
“We have chosen coins that have their own blockchain, high market capitalization and a large liquidity pool,” Mattia Rattaggi, chairman of the FiCAS Board detailed in a written statement.
“Time will tell how this innovation will impact the industry. Arguably, an actively managed, discretionary ETP may be better suited for the still-nascent cryptocurrency markets, because it focuses on active risk management more than in a systematically-driven passive ETP,” Rattaggi added.
The BTCA will be issued by Bitcoin Capital AG and it will trade against “the top 15 cryptocurrencies and aims to deliver enhanced returns for clients.” The Switzerland government has given FiCAS full regulatory approval to offer the BTCA product to investors.
The founder of FiCAS, Ali Mizani Oskui explained during the announcement that the BTCA is an “important milestone in our effort to deliver enhanced market returns for our clients over time.” Oskui further stated:
Based on our in-depth trading and analytical experience, actively managing our underlyings allows us to preempt and react to market movements through the discretionary buying and selling of crypto assets to steer risk-adjusted returns. Personally, I have built my expertise in crypto trading since 2013, with a strong track record in outperforming the market. I look forward to bringing my trading experience to global and institutional markets with this pioneering product.
Switzerland’s principal stock exchange offers numerous cryptocurrency products and listings have been gradually added over the years. In December 2019, Wisdomtree’s physically-backed bitcoin ETP went live on the SIX stock exchange.
SIX also has a number of crypto ETPs issued by fintech company Amun AG. Investors leveraging these products can bet against bitcoin’s price or invest in ETPs that track the price movements of crypto assets like XRP, ETH, BCH, and others.
What do you think about the latest actively managed Bitcoin Capital Active ETP listed on the SIX exchange? Let us know what you think in the comments section below.
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