Amun AG, a popular fintech company has listed its first reverse Exchange-Traded Product (ETP) for Bitcoin on popular Swiss stock exchange SIX. An inverse ETP is mainly aimed at shorting where the traders are rewarded if the underlying product falls in value. Amun’s reverse ETP would allow its traders to short Bitcoin.
The one of its kind ETP is called 21Shares Short Bitcoin ETP (SBTC) and help traders to gain exposure to the lucrative digital currency market through shorting. The current addition of inverse ETP for Bitcoin makes the total number of derivative products by Amun listed on exchanges to 11. While there are similar inverse derivative products for the traditional stock market, Amun’s Bitcoin backed ETP is the first in the digital space.
Amun also promises high-grade account management with priority on security and independent custodian services. The fintech firm also believes its list of derivative products has been designed to give exposure to both retail as well as institutional-grade investors to the digital space. Hany Rashwan, CEO Amun AG also commented on the company’s feat saying they have worked really hard to introduce such an innovative derivative product and hoped it would help investors and traders to make the most of the digital space. He said,
“Our platform is now near complete and marks an important step towards the introduction of derivative products in conventional ETP form for the still-nascent crypto market and I am proud that the Amun team continues to pioneer innovation and bring new investor-friendly institutional-grade products to the market.”
How Does an Inverse ETP Works?
Margin trading has become one of the most attractive forms of trading in the decentralized space as many platforms offering such services offers 100X and some even 200X leverage. Traders have the option to either go long or short depending on the market price movement of digital assets. In the case of SBTC, people would only be able to short the prices of Bitcoin and gain a profit based on the percentage fall in the price of Bitcoin.
If a consumer buys Bitcoin with SBTC at $1,000, a short position will be opened and a fall in price from that point in the given time frame would be the gain of the SBTC buyers. So, if BTC falls by 10% in the given time frame, the SBTC trader would make a 10% gain on his SBTC holdings.