Even though digital currency trading volume in Switzerland is not as heavy as in the United States, the European nation is far more advanced in terms of blockchain development and acceptance by financial regulators. According to a press release recently published by Bitwise, a financial technology firm based in San Francisco, a new exchange-traded investment product based on cryptocurrencies will soon launch on the SIX Swiss Exchange, and its underlying asset will be a basket of tokens.

It should be noted that Bitwise will not be managing this instrument; the company is merely licensing a financial index to Amun AG, a financial technology firm based in Switzerland and regulated by the laws of that country. To a great extent, Bitwise Index Services is similar to Dow Jones in the sense that it collects, organizes and publishes market data, but it does not actually manage funds. Amun AG will use a Bitwise index that tracks the following cryptocurrencies:

Bitcoin Bitcoin Cash Cardano EOS Ethereum Litecoin Lumens XRP (Ripple)

Notice how the Bitwise 10 Select Large Cap only tracks 10 tokens as of June 27, but this is bound to change in the near future as the cryptocurrency exchange markets become more mature. Bitwise is looking to become the most reliable provider of benchmark financial index data, and this partnership with Amun AG is a step in the right direction.

In Switzerland, exchange-traded products are similar to exchange-traded funds on Wall Street; they are listed on major financial exchanges and can be bought and sold as if they were shares of blue chip companies. The convenience of these instruments is that they allow investors to take market positions that are easily settled in fiat currencies; in other words, they do not require traders to put as much "skin in the game" as they would if they actually acquired cryptocurrency tokens.

American citizens generally not allowed to invest in exchange-traded funds unless they reside outside of the United States. With this new instrument, the SIX Swiss Exchange will feature five ETPs related to cryptocurrencies: one for Bitcoin, one for Ethereum, one for Ripple, and two based on benchmark indices.