Traders are going crazy over Switzerland’s new exchange traded product | Ripple, Coinbase back project aimed at revolutionizing the U.S. securities industry

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“Now, losing a little less value than the worthless currency of a bankrupt government run by an economically illiterate drug cartel has — Venezuela’s ruling class has also gotten into the cocaine trade — might not seem like much of an accomplishment. That’s because it isn’t.” — Matt O'Brien, reporter Washington Post

The Big Block

An exchange traded product tracking five of the largest cryptos has become a darling among traders even as the market for digital assets continues to dump. 

The so-called Amun Crypto Basket ETP began trading on Switzerland’s Six Exchange last week and it now has the highest volume of any exchange-traded product trading on the venue. To be sure, the price of the investment product is down 15% at $12.40 a unit, reflecting the bearish sentiment of the overall crypto market. It began trading near $13.80 a unit. Since mid-November, the market for digital currencies has shed more than $85 billion. 

Still, its turnover of 425,000 CHF ($425,000) a day beats a number of products in silver, crude oil, and gold trading on Six. High volumes are typically a sign of investor enthusiasm in a given stock or financial-product. As for Amun, the fact that volumes are so high could indicate that there was a lot of pent up demand for buying digital assets, according to market structure specialists who spoke to The Block.

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Around The Block

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Jane Street and Flow Traders are actively trading the top five cryptocurrencies for a new exchange-traded product

Jane Street Financial Ltd. and Flow Traders NV, two quantitative trading firms and liquidity providers, have become active traders of bitcoin, XRP, ether, bitcoin cash, and litecoin as authorized participants for the Amun Crypto ETP, according to a Bloomberg report. The Amun Crypto ETP designed to hold the underlying cryptocurrencies on which its value is based. This structure requires authorized participants — in this case, Jane Street and Flow Traders — to supply the ETP with cryptocurrencies if it grows and offload assets if it shrinks. — More

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