Swiss stock exchange SIX has listed yet another crypto exchange-traded fund (ETP), this time backed by Binance Coin (BNB).
The cryptocurrency exchange has partnered with Amun AG, a Swiss fintech firm, to develop the USD-denominated investment product.
Listed under the ticker symbol of ABNB, it is the eighth such crypto-focused instrument listed by the exchange.
In a statement, Binance’s CEO Changpeng Zhao said: “Our partnership with Amun in launching the BNB ETP will provide investors with a new and regulated asset class with a unique dimension to utility tokens, making them more accessible and reliable through a traditional financial infrastructure.”
“This will provide traditional investors access with diversified exposure and segue into the global cryptocurrency market and its innovative products.”
An array of crypto-based investment products
Amun is known to be working on crypto investment products and to date has listed seven ETPs in the Swiss exchange, the most recent one being a Swiss franc-denominated instrument backed by Bitcoin and Ethereum.
ETP is a publicly listed investment product that can be traded like any other stock. However, the companies managing them are legally obliged to back the products on a one-to-one basis by reserves of the underlying assets.
According to Coindesk, the newly launched ETP will be initially backed by $20 million worth of BNB tokens - in contrast, the value of Amun’s entire portfolio is capped at $75 million.
Issued by Binance, BNB can be used in paying transaction fees in the exchange and its development and project marketing. With 2.9 billion in market cap, it is one of the top ten largest digital currencies available on the market today, according to Coinmarketcap.com.
Meanwhile, Binance recently listed an XRP-pegged digital currency on its decentralized platform Binance DEX, aiming to increase the market Liquidity of the crypto. It was issued on Binance Chain as a BEP2 token.
