Swiss ETP records strong volumes since launch
Recently launched Swiss Exchange Traded Fund
Amun Crypto Basket Index (SIX: HODL) and which is trading on Swiss Exchange SIX has recorded new volumes even as cryptocurrency prices remained depressed, indicating that the savvy investors could be buying the dips.
In a yesterday tweet by FX Hedge Fund CEO Su Zhu, the wiss HODL ETF last Thursday and Friday broke volume with 53,233 shares and 62,986 shares traded respectively. It happened when BTC and ETH tumbled to below $3200 and ETH to below $90. He said that the correlation between volume and prices continues to be "very strong" at 68%. In other words, the relation is negative to mean a price dip in Ethereum and Bitcoin causes ETP volumes to increase.
On December 5 Zhu said that there was a high percentage net inflow of volume indicating that users are holding not trading. This is after 27,244 shares on November 23 led to 20,000 shares being created and 16,727 shares on November 26 led to 15,000 shares being created.
An ETP offers a basket of exchange-traded produ9cts that is designed by the investment manager to give investors a broader, more balanced access to a sector of interest. The manager will organize for liquidity, manage pricing, book trades and create an indexed price for simple valuation.
For the Amun Crypto Basket Index (SIX: HODL), investors get exposure to the four most liquid digital currencies according to market capitalization but with smaller shares of other coins as well. Bitcoin comprises the largest share of the HODL ETP at 48%, followed by XRP (30%), Ethereum (17.6%), and smaller shares of Bitcoin Cash and Litecoin.
An ETP, according to experts, may be a great way for an investor or family business looking to add cryptocurrencies to their portfolios for purposes of diversification. Chairman of the Concordium Network and the Concordium Foundation told Investing.com that these products usually carry an advantage.
