For a large segment of investors that does not yet own crypto, and does not want to bother with crypto exchanges, but wants exposure to the asset class, ETPs and ETFs are a great way to cheaply access crypto. However, traditional exchanges around the world have been slow to warm up to products that track crypto. Except for a select few like the SIX exchange in Switzerland.
Binance’s native cryptocurrency will serve as the underlying asset to a new exchange traded product (ETP). The world’s largest crypto exchange by trading volume said Wednesday it has partnered with fintech firm Amun to develop the USD-denominated ETP.
Listed on the Switzerland’s principal stock exchange SIX under the ticker ABNB, the financial product can be purchased through a bank or a brokerage like a stock. The ETP will initially be backed by $20 million worth of Binance coins (BNB), representing nearly a quarter of the firm’s total crypto assets under management.
Amun had already partnered with Bitcoin Suisse to launch ETPs for Bitcoin, Ethereum and XRP. Despite the regulatory concerns around Binance, it is interesting to see a traditional finance product being created for BNB tokens. It is perhaps the strong outperformance of centralized exchange tokens YTD that caused this segment of utility tokens to gain traction.
One thing to note though - Especially given that the fascination for IEOs also seems to be on the wane now
, BNB is definitely heading down from its peak earlier this year. Could this be a case of retail rushing in after the the party is over?