Zug-headquartered SEBA Bank is set to debut a suite of four crypto asset ETPs on SIX Swiss Exchange targeted at institutional investors.
The ETPs, which will begin trading on 9 April, is being brought to market in partnership with GHCO, a liquidity provider specializing in exchange-traded products.
The ETPs invest directly in the underlying digital assets with assets custodied at SEBA Bank.
Similar to other crypto asset ETPs on the market, the new products offer the oversight, security, and liquidity of an ETP while allowing investors to bypass the technical challenges of investing directly in cryptocurrency markets such as setting up a digital wallet and trading on unregulated exchanges.
SEBA’s initial ETP suite consists of bitcoin and ether trackers US dollars, as well as the first bitcoin tracker with currency hedging between the US dollar and the Swiss franc.
The fourth ETP is on the SEBA Crypto Asset Select Index, a proprietary multi-crypto-asset index developed by SEBA’s research division.
The index methodology first uses qualitative filters to define the eligible universe with emphasis on safety, technical reliability, and tradability. Constituents are weighted using an equally weighted combination of market capitalization and risk-parity approaches. The index is rebalanced on a monthly basis.
As of the end of February, bitcoin accounted for half (49.1%) of the index weight with the next-largest constituents being ethereum (20.3%), ADA (12.7%), Litecoin (10.6%), and Stellar (7.4%).
The ETPs and their expense ratios are outlined below:
SEBA Bitcoin Tracker Certificate USD (SBTCU SW); expense ratio of 0.75%
SEBA Bitcoin Tracker Certificate CHF (SBTCC SW); 1.50%
SEBA Ether Tracker Certificate USD (SETH SW); 0.75%
SEBA SEBAX Tracker Certificate USD (SEBAX SW); 1.50%
Stefan Schwitter, Head of Investment Solutions at SEBA Bank, commented: “We believe our products stand out based on the institutional-grade quality and the highly competitive price points. We are providing a secure and cost-effective alternative to holding coins directly at exchanges.”
Guido Bühler, CEO of SEBA Bank, added: “We set out to build a bridge from traditional banking to the digital world. Our product philosophy and the exceptional performance track record of the SEBAX Index are a reflection of this ambition.”
Stefan Kaba-Ferreiro, Head of Trading and Managing Partner at GHCO said: “ETPs are a key development for investing in crypto assets as it matures as an asset class and we see more demand for reliable, easily accessible infrastructure with deep pools of liquidity.”