Vontobel, a Swiss investment company, is expected to become the first issuer of Bitcoin tracker certificate for subscription on the SIX Swiss Exchange, it said on Monday. The company has applied for admission with the stock exchange and expects the trading to launch on 15 July, 2016. The move will allow Swiss investors to participate in the development of the Bitcoin price vs the USD.
The certificate on Bitcoin is in US dollars (USD) and is a classic tracker certificate (SSPA: 1300). It has a two-year term, which means that the final fixing will be made on 16 July, 2018. Investors will be able to trade the Vontobel certificate on the secondary market, where they can buy or sell at the applicable bid/offer prices.
“The new Bitcoin certificate will for the first time give investors a simple and transparent means of investing in Bitcoins on the SIX Swiss Exchange,” said Roger Studer, head of Vontobel Investment Banking. “Vontobel is thus once again demonstrating its capacity for innovation as one of the leading providers of structured products,” he added.
Tracker certificates are a type of structures product that follow and replicate the price movement of the instrument they track, in this case the Bitcoin. Since they do not have a cap, tracker certificates present the same risk as trading in the instrument itself.
Bitcoin is a type of cryptocurrency introduced in 2009. Although there are hundreds of other cryptocurrencies, Bitcoins account for more than 90% of the virtual currency market. There are about tens of millions of Bitcoins circulating out there and their market cap is estimated to come close to $11 billion.
Vontobel specializes in active asset management and tailor-made investment solutions. It is majority-owned by the Vontobel families and the Vontobel Foundation. The holding company is listed on the SIX Swiss Exchange, which is Switzerland’s principal stock exchange.