AMUN LAUNCHED SHORT BITCOIN ETP ON LEADING SWISS EXCHANGE SIX

The world of cryptocurrency investments is constantly evolving, offering both exciting opportunities and inherent risks.For investors looking to navigate the volatile Bitcoin market with more sophisticated strategies, a new option has emerged. Amun, a Switzerland-based issuer of exchange-traded products linked to crypto-assets, has announced the launch of the 21Shares Short Bitcoin ETP (SBTC SW) on SIX Swiss Exchange. Hany Rashwan, CEO of Amun.Swiss fintech company Amun AG has launched the 21Shares Short Bitcoin ETP (SBTC) on the SIX Swiss Exchange, Switzerland’s premier stock exchange and the fourth largest in Europe.This groundbreaking exchange-traded product (ETP) provides investors with inverse exposure to Bitcoin, meaning it's designed to profit when the price of Bitcoin declines.Think of it as a way to potentially hedge your existing Bitcoin holdings or even capitalize on bearish market trends. Swiss cryptocurrency financial firm Amun AG launched an Exchange Traded Product (ETP) giving investors inverse exposure to Bitcoin (BTC), called 21SharesThe launch of SBTC on a reputable exchange like SIX offers a regulated and transparent avenue for accessing inverse Bitcoin exposure, a significant step forward in the maturity of crypto investment products. Amun Launched Short Bitcoin ETP on Leading Swiss Exchange SIX Published at: Jan. 23, 2025 Swiss cryptocurrency financial firm Amun AG launched an Exchange Traded Product (ETP) giving investors inverse exposure to Bitcoin (BTC), called 21Shares Short Bitcoin (SBTC).Understanding how this ETP works, its potential benefits, and associated risks is crucial for making informed investment decisions in the ever-changing landscape of digital assets.

Understanding the 21Shares Short Bitcoin ETP (SBTC)

The 21Shares Short Bitcoin ETP, traded under the ticker SBTC SW, represents a significant innovation in the realm of cryptocurrency investment products.This isn't your typical ""buy and hold"" Bitcoin investment. Swiss fintech company Amun AG launched a new exchange-traded product (ETP) on Switzerland's Zurich-based SIX Exchange. This latest launch is the 21Shares Short Bitcoin ETP (SBTC tracker) and claims to track the opposite performance of bitcoin (BTC) and is another way to gain exposure in both directions of the Bitcoin price movements.Instead, it's a derivative designed to move in the opposite direction of Bitcoin's price.

In simple terms, if Bitcoin's price goes up, the SBTC ETP is expected to go down. Skip to main content Bitcoin Insider. MenuConversely, if Bitcoin's price falls, the SBTC ETP is expected to rise.This inverse relationship is achieved through a combination of financial instruments and strategies managed by Amun AG. ή ή ί ά Amun AG ό έ ϊόThis makes SBTC a tool for sophisticated investors looking to manage risk or profit from Bitcoin's price volatility.

The SBTC ETP claims to track the opposite performance of Bitcoin (BTC) and is another way to gain exposure in both directions of the Bitcoin price movements.

How Does the Inverse Exposure Work?

The exact mechanisms used to achieve inverse exposure can be complex, but they typically involve using derivatives like futures contracts or swaps. Swiss cryptocurrency financial firm Amun AG launched an Exchange Traded Product (ETP) giving investors inverse exposure to Bitcoin (BTC), called 21Shares Short Bitcoin (SBTC). As CointelegraphThese instruments allow investors to effectively ""short"" Bitcoin without directly holding the underlying asset.For example, the ETP might hold Bitcoin futures contracts that are designed to profit when the price of Bitcoin falls.

It’s important to remember that these products are designed to provide inverse exposure to the *daily* performance of Bitcoin.This means that over longer periods, the returns of the SBTC ETP might not perfectly match the inverse of Bitcoin's price movement due to the effects of compounding and the cost of maintaining the inverse position. It will begin trading on Six Swiss Exchange next week. Six is Switzerland s chief stock exchange, as well as the fourth largest in Europe. According to the Financial Times, the ETP [ ] has been designed to track an index based on the movements of five leading cryptocurrencies.This is a characteristic of most leveraged or inverse ETFs and ETPs across various asset classes.

Key Features of the 21Shares Short Bitcoin ETP

• Inverse Exposure: Designed to provide returns that are the inverse of Bitcoin's daily price movements.
• Exchange Traded: Traded on the SIX Swiss Exchange, offering liquidity and transparency.
• Regulated Environment: Operates within the regulatory framework of the Swiss financial market, providing investor protection.
• Accessibility: Provides an accessible way for investors to gain inverse exposure to Bitcoin without directly managing complex derivatives strategies.
• Ticker Symbol: Traded under the ticker symbol SBTC SW.

Amun AG and the SIX Swiss Exchange

Understanding the entities behind the SBTC ETP is crucial for assessing its credibility and reliability.

About Amun AG

Amun AG, now known as 21Shares, is a Swiss fintech company specializing in creating and managing exchange-traded products linked to crypto-assets. Swiss cryptocurrency financial firm Amun AG launched a derivative giving investors inverse exposure to Bitcoin, called 21Shares Short Bitcoin Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.They have a proven track record of launching innovative crypto ETPs on major European exchanges.Led by CEO Hany Rashwan, the company aims to bridge the gap between traditional finance and the emerging world of digital assets by providing accessible and regulated investment products.

Amun AG emphasizes transparency and security in its operations.They strive to offer investors a secure and efficient way to gain exposure to cryptocurrencies through familiar investment vehicles.Their focus on regulatory compliance and investor protection sets them apart in the rapidly evolving crypto investment landscape.

The Significance of the SIX Swiss Exchange

The SIX Swiss Exchange is Switzerland's primary stock exchange and one of the leading exchanges in Europe.It provides a well-regulated and liquid marketplace for trading a wide range of securities, including equities, bonds, and ETFs/ETPs. Swiss cryptocurrency financial firm Amun AG launched a derivative giving investors inverse exposure to Bitcoin, called 21Shares Short Bitcoin. Read More: Amun Launched Short Bitcoin ETP on Leading Swiss Exchange SIXIn fact, according to its official website, the SIX Swiss Exchange has seen 1.94 billion Swiss francs ($2 billion) in operating income.

Listing the SBTC ETP on the SIX Swiss Exchange is a significant milestone for Amun AG and the broader crypto industry. Swiss cryptocurrency financial firm Amun AG launched a derivative giving investors inverse exposure to Bitcoin, called 21Shares Short BitcoinIt provides the ETP with increased visibility and credibility, attracting a wider range of investors. Swiss fintech company Amun AG launched a new exchange-traded product (ETP) on Switzerland's Zurich-based SIX Exchange. This latest launch is the 21Shares Short Bitcoin ETP (SBTC tracker) thatThe exchange's stringent listing requirements ensure that the ETP meets certain standards of transparency, governance, and risk management.

The SIX Swiss Exchange has been at the forefront of embracing crypto-related investment products.Its willingness to list ETPs like SBTC demonstrates its commitment to innovation and its recognition of the growing demand for crypto exposure among investors.

Benefits of Investing in the 21Shares Short Bitcoin ETP

The SBTC ETP offers several potential benefits for investors who understand its unique characteristics:

• Hedging Bitcoin Holdings: If you already hold Bitcoin, the SBTC ETP can be used to hedge against potential price declines. Amun Launched Short Bitcoin ETP on Leading Swiss Exchange SIX . According to its official website, the Six Swiss Exchange has seen 1.94 billion Swiss francs ($2 billion) in operating income inBy investing in SBTC, you can potentially offset losses in your Bitcoin portfolio if the price of Bitcoin falls. Swiss cryptocurrency financial firm Amun AG launched an Exchange Traded Product (ETP) giving investors inverse exposure to Bitcoin (BTC), called 21Shares Short Bitcoin (SBTC). As Cointelegraph Japan reported earlier today, Amun launched the derivative in question on Jan. 22 on Switzerland s leading stock exchange, Six Swiss Exchange.For example, if you own 1 BTC and anticipate a price drop, investing a portion of your capital in SBTC could mitigate losses.
• Profiting from Bitcoin Downturns: The SBTC ETP allows you to profit from bearish market conditions.If you believe that the price of Bitcoin is likely to decline, you can invest in SBTC to capitalize on that expectation.
• Diversification: Adding SBTC to your portfolio can potentially diversify your investment strategies.It provides exposure to a different return profile than traditional assets or long-only Bitcoin investments.
• Accessibility and Liquidity: The ETP is traded on a regulated exchange, making it easy to buy and sell shares.This provides liquidity and transparency, allowing you to enter and exit positions quickly and efficiently.
• Simplified Shorting: The SBTC ETP simplifies the process of shorting Bitcoin.Instead of directly managing complex derivatives strategies, you can gain inverse exposure through a single, exchange-traded product.

Risks Associated with the Short Bitcoin ETP

While the SBTC ETP offers potential benefits, it's essential to be aware of the risks involved:

• Volatility: Bitcoin is a highly volatile asset, and the SBTC ETP is subject to the same volatility, but in the inverse direction.This means that the value of the ETP can fluctuate significantly in a short period.
• Compounding Effects: As mentioned earlier, the ETP is designed to provide inverse exposure to the *daily* performance of Bitcoin.Over longer periods, the returns of the SBTC ETP might not perfectly match the inverse of Bitcoin's price movement due to the effects of compounding and the cost of maintaining the inverse position.
• Cost of Carry: Maintaining the inverse position through derivatives involves costs, such as interest payments or margin requirements.These costs can erode the returns of the ETP over time.
• Counterparty Risk: The ETP relies on counterparties to execute its derivatives strategies.If a counterparty defaults, it could negatively impact the value of the ETP.
• Regulatory Risk: The regulatory landscape for cryptocurrencies is constantly evolving.Changes in regulations could impact the ETP's ability to operate or its attractiveness to investors.
• Potential for Unlimited Losses: While the ETP aims to provide inverse exposure, it's important to understand that losses are not necessarily capped.In extreme market conditions, the ETP could experience significant losses.

Who Should Consider Investing in the SBTC ETP?

The 21Shares Short Bitcoin ETP is not suitable for all investors.It's generally best suited for:

• Experienced Investors: Investors who have a good understanding of cryptocurrency markets and derivatives.
• Risk-Tolerant Investors: Investors who are comfortable with high volatility and the potential for significant losses.
• Sophisticated Investors: Investors who are looking for advanced strategies to manage risk or profit from Bitcoin's price movements.
• Investors with a Bearish Outlook on Bitcoin: Investors who believe that the price of Bitcoin is likely to decline.

It's crucial to remember that investing in the SBTC ETP should be part of a well-diversified investment portfolio and should not be the sole focus of your investment strategy.Always consult with a qualified financial advisor before making any investment decisions.

Practical Examples of Using the SBTC ETP

To better understand how the SBTC ETP can be used, consider these practical examples:

Example 1: Hedging an Existing Bitcoin Portfolio

Suppose you own 2 Bitcoin (BTC) currently valued at $60,000 each, for a total of $120,000.You are concerned about a potential market correction and want to protect your investment.You decide to allocate $20,000 to the 21Shares Short Bitcoin ETP (SBTC).

If Bitcoin's price drops by 20% to $48,000, your Bitcoin holdings would decrease in value by $24,000 (2 BTC x $12,000 loss per BTC).Ideally, the SBTC ETP would increase in value by approximately $4,000 (20% of your $20,000 investment).This gain would partially offset the losses in your Bitcoin portfolio, effectively hedging your overall exposure.

Example 2: Profiting from a Predicted Bitcoin Price Decline

You believe that Bitcoin's price is overvalued and likely to decline in the near future.You decide to invest $10,000 in the SBTC ETP.

If Bitcoin's price drops by 10%, the SBTC ETP would ideally increase in value by approximately $1,000 (10% of your $10,000 investment).You could then sell your SBTC holdings and realize a profit, capitalizing on your bearish prediction.

Important Considerations:

• These examples are simplified and do not account for fees, tracking error, or the complexities of derivatives pricing.
• The SBTC ETP is designed to provide inverse exposure to the *daily* performance of Bitcoin.Over longer periods, the returns might not perfectly match the inverse of Bitcoin's price movement.

How to Invest in the 21Shares Short Bitcoin ETP

Investing in the SBTC ETP is similar to investing in any other exchange-traded product.Here's a general overview of the process:

1. Open a Brokerage Account: You'll need a brokerage account that allows you to trade on the SIX Swiss Exchange.Many online brokers offer access to international exchanges.
2. Fund Your Account: Deposit funds into your brokerage account.
3. Find the SBTC ETP: Search for the SBTC ETP using its ticker symbol (SBTC SW) on your broker's platform.
4. Place an Order: Enter the number of shares you want to buy and place an order.You can choose between a market order (to buy at the current market price) or a limit order (to buy at a specific price).
5. Monitor Your Investment: Track the performance of your SBTC ETP holdings and adjust your position as needed based on your investment strategy and risk tolerance.

Remember to consult with a financial advisor before making any investment decisions.

The Future of Crypto ETPs and Inverse Exposure

The launch of the SBTC ETP on the SIX Swiss Exchange is a sign of the growing maturity of the cryptocurrency market and the increasing demand for sophisticated investment products.As the crypto industry continues to evolve, we can expect to see more innovative ETPs that provide investors with a wider range of options for managing risk and generating returns.

Inverse exposure products like the SBTC ETP play an important role in providing liquidity and price discovery in the crypto market.They allow investors to express bearish views and hedge against potential losses, which can contribute to a more stable and efficient market.However, it's crucial for investors to understand the risks associated with these products and to use them responsibly.

Conclusion

The Amun Launched Short Bitcoin ETP on Leading Swiss Exchange SIX represents a significant development in the cryptocurrency investment landscape.It provides investors with a regulated and transparent way to gain inverse exposure to Bitcoin, offering opportunities for hedging, profiting from downturns, and diversifying investment strategies.However, it's crucial to understand the risks associated with this product and to use it responsibly as part of a well-diversified investment portfolio.

Key takeaways:

• The 21Shares Short Bitcoin ETP (SBTC) allows investors to profit from a decline in Bitcoin's price.
• It's traded on the SIX Swiss Exchange, providing liquidity and transparency.
• It's best suited for experienced, risk-tolerant investors with a bearish outlook on Bitcoin.
• Always consult with a financial advisor before making any investment decisions.

Ready to explore advanced crypto investment strategies?Remember to do your research and seek professional financial advice before investing.Good luck!