Yahoo Finance BNB-Based Crypto ETP Now Live on Swiss SIX Stock Exchange
Binance’s native cryptocurrency will serve as the underlying asset to a new exchange traded product (ETP).
The world’s largest crypto exchange by trading volume said Wednesday it has partnered with fintech firm Amun to develop the USD-denominated ETP.
Listed on the Switzerland’s principal stock exchange SIX under the ticker ABNB, the financial product can be purchased through a bank or brokerage like a stock.
Related: Binance Adds XRP-Pegged Token to Its Decentralized Exchange
Amun CEO Hany Rashwan told CoinDesk the ETP will initially be backed by $20 million worth of Binance coins (BNB), representing nearly a quarter of the firm’s total crypto assets under management.
Since launching the first crypto-backed ETP in Nov. 2018, Rashwan said Amun’s suite of 8 crypto-ETPs are backed by $75 million in total assets.
The regulated ETP provides an avenue for investors to gain exposure to one of the top performing cryptocurrencies. According to Messari, BNB has a $2.84 billion market capitalization, making it the eighth largest crypto by that metric. In recent months, daily transaction volume usually top $100 million.
BNB is used to pay transaction fees on the exchange and for Binance’s development and projects marketing. The exchange completed its initial coin offering (ICO) of 100 million BNB in 2017, raising approximately $15 million.
Related: Binance Now Accepting Fiat Through Alipay, WeChat
Binance has capped the supply of BNB at 200 million tokens, of which the firm plans to “burn” half to prevent depreciation.
Trading photo via Shutterstock
