Crypto ETN issuer issuance.swiss offers access to momentum and Web 3.0 strategies in cooperation with Crypto Finance.
27. March. 2024. FRANKFURT (BörseFrankfurt). The first two crypto ETNs from issuance.swiss in cooperation with Crypto Finance have been tradable on Xetra and via the Frankfurt Stock Exchange since Wednesday.
The CF Crypto Momentum ETP gives investors access to the performance of the Vinter CF Crypto Momentum Index, which is made up of the largest and most liquid crypto assets. The crypto assets are selected based on a momentum strategy that invests in digital assets with the fastest growing network effects. The following crypto assets are currently included in the product portfolio: Bitcoin, Bitcoin Cash, Cardano, Chainlink, Ethereum, Ethereum Classic, Near, Polkadot, Polygon, Solana and Uniswap.
The CF Crypto Web 3.0 ETP tracks the performance of the Vinter CF Crypto Web3 Index and enables a diversified investment in crypto assets with a focus on the Web 3.0 megatrend. The ETP covers several areas such as smart contract platforms, scaling solutions and DeFi protocols. The product portfolio currently includes the crypto assets Aave, Algorand, Avalanche, Cardano, Chainlink, Cosmos, Eos, Ethereum, Ethereum Classic, Fantom, Near, Polkadot, Polygon, Solana, Tezos and Uniswap.
Both ETNs can be traded in either euros or US dollars using the respective Xetra abbreviation. The annual management fee is 1.59 percent in each case.
Name | ISIN | Reference Index | Abbr. | Abbr. USD |
CF Crypto Momentum ETP | Vinter CF Crypto Momentum Index | CFMM | CFMN | |
CF Crypto Web 3.0 ETP | CH1263519386 | Vinter CF Crypto Web3 Index | CFB3 | CFBA |
All crypto ETNs tradable on Xetra are physically collateralized and listed on the Regulated Market of the Frankfurt Stock Exchange. In addition, all crypto ETNs on Xetra are cleared by Eurex Clearing AG as the central counterparty (CCP) of Deutsche Börse Group. Thanks to central clearing, institutional investors in particular benefit from significantly reduced risks in the settlement of transactions.
The product offering in Deutsche Börse's ETF & ETP segment currently comprises a total of 2,150 ETFs, 191 ETCs and 234 ETNs. With this selection and an average monthly trading volume of around €15 billion, Xetra is the leading trading venue for ETFs and ETPs in Europe.
"With the CF Crypto Momentum ETP (CFMOM), we are listing a product that has been traded on a Swiss stock exchange since spring 2023. The strategy has therefore already proven itself on the market for almost a year and the investment performance in live operation is pleasing.
In addition, the investment strategy of the CF Crypto Momentum ETP is successful. We are currently not aware of any other crypto strategy that combines the price momentum factor with an on-chain momentum strategy designed by us. Price momentum has been used successfully for decades in traditional asset classes such as equities. On-chain momentum, on the other hand, is a blockchain-specific factor that aims to hold tokens in the ETP that attract many users. In short, we use on-chain momentum to define the adoption rate of the respective tokens and invest in the most widely used blockchains.
What sets us apart from other ETP issuers is our high-quality institutional DNA. Since 2018, we have been a leader in managing institutional crypto portfolios and have built up outstanding expertise in this emerging asset class. Our CF Crypto Momentum ETP is now our first product available to retail clients in Germany.
Cryptocurrencies have now established themselves as a new, emerging asset class. The EU regulation MiCA (Markets in Crypto Assets Regulation) will come into force in December 2024. At the same time, there are more and more promising and practical applications for this technology. Examples include the tokenization of assets or stablecoins. Crypto as an asset class is developing very dynamically and is attractive to more and more investors as an addition to their portfolios.
From an investor's perspective, this new market with thousands of tokens is often opaque and difficult to assess. We have designed the CF Crypto Momentum ETP so that it can be used as a "one-stop" investment solution in portfolios. The CF Crypto Momentum strategy is diversified across multiple tokens to take into account the most attractive protocols."
Friedrich Herzog, Senior Portfolio Manager & Head of Research, Crypto Finance Group