https://ift.tt/2DvVUuN is an interesting development from Amun, who only released the underlying index (HOLD5) in September, which should attract serious AUM.I'll be following closely the progress of sales, distribution and performance. However, I would say that the SwissBorg SB20 index is far superior than the Amun Index.A few initial observations:This is an ETP, NOT an ETF as lazily reported by many news outletsAn ETP is a collateralised debt security, not a fundInvestor is exposed to the credit risk of Amun AG (the "Issuer")The Issuer is not regulatedThe Issuer is 100% owned by the Amun Technologies Limited (the "Index Sponsor")The Board of the Issuer is majority controlled by employees/founders of the Index Sponsor. The 3rd director is linked to MCO MonacoInstitutional product - not for retail distribution (in EEA)The Issuer "intends" to use proceeds from the sale of products to buy for the underlying components for collateral AND for general corporate purposes - No definition of "general corporate purposes".Products aim to be 100% collateralised, however due to price changes this may not be possible (also costs will be taken from realisation of assets - so would likely to be less than 100% anyway)In event of default of Issuer, investors are ranked 4th in priorityCustody of collateral is from Kingdom Trust Company (the "Custodian") through a multi layer, multi authenticator, cold storage security platformCustodian owns the wallet private keysUCITS eligible (although approval by UCITS member regulator required)This is a passive investment, Amun do not provide active managementRedemptions are limited, an investor has right to redeem on an annual basis (upto 60 days notice required)Daily liquidity through SIX not guaranteedETP provides exposure to the HOLDL5 index; a basket of crypto assetsDelta 1 synthetic exposure through put optionsthe underlying index, HOLD5, is maintained by MVIS , a VanEck companyIndex components are 5 of the top 7 eligible crypto assets, based on market cap (top 3 plus 2 of next 4)Index components are essentially BTC, ETH, BCH, XRP, LTC, XLM, EOS,rebalanced monthlymin/ max weighting: 3%/50%Index eligibility criteria includes :>$1b market cap (30 days)>$25m daily volume (30 days)no stable or privacy coinsasset existed for more than 12 monthstrades > 33% of circulating supply (30 days)
Submitted November 19, 2018 at 07:25AM
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