Swiss FINTECH startup Amun has launched a BTCSHORT token (BTCS), whose holders can earn on the fall of the bitcoin exchange rate within 24 hours.
This token complements the ETP financial product based on the reverse movement of the bitcoin exchange rate and launched by Amun on the Swiss stock exchange (SIX) in January. The product is now under the control of the Amun – 21Shares subsidiary. BTCS is an ERC20 standard token that functions on the basis of Ethereum. The token is developed according to 21Shares standards.
Amun and 21Shares CEO Hany Rashwan said that BTCS will be available on the secondary market, in particular, on the cryptocurrency exchanges Liquid, HitBTC and Bitcoin.com. The token was deliberately released on the eve of halving the reward for bitcoin miners, so that traders can protect themselves from potential volatility.
In order to comply with regulatory requirements, BTCS are issued and burned on the Amun platform in exchange for the USDC dollar stablecoin. BTCS will not be available to us and Swiss investors, as well as to those countries that are subject to international sanctions. The head of Amun said that in the next few weeks, similar reverse ETP will be issued to hedge the falls of ETH, which is the second largest by market capitalization.
Rashwan added that today there is a huge demand for reverse ETP and margin trading tools, and users prefer to buy such products in the most secure way. Therefore, BTCS is aimed at retail and institutional investors who are risk averse and prefer to trade products that meet regulatory requirements. According to Rashwan, regulation plays an important role, but many derivatives trading platforms are registered in jurisdictions with”weak regulation”. However, he believes that in the near future, cryptocurrency derivatives will surpass spot trading in volume.
Recall that in December, Amun received approval from the Swedish financial Supervisory Authority (SFSA) to sell cryptocurrency ETP to retail investors in the European Union.