SIX Swiss Exchange sees extraordinary crypto growth

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Danielle Reischuk, SIX

SIX Swiss Exchange | Best European Exchange for Listing Cryptocurrency ETPs - Switzerland’s SIX Swiss Exchange was one of the first in Europe to have clear regulations for listing cryptocurrency ETPs and structured products, and having established those rules in 2018, it is now very much at the forefront of recognition in this sector.

Rules and standards provide security and enable scaling and creating a clear framework regarding crypto underlyings early on allowed SIX Swiss Exchange to meet the needs of issuers and investors.

Danielle Reischuk, Senior ETFs & ETPs Sales Manager reports that last year the exchange saw a record CHF8.6 billion traded in cryptocurrencies, a 673 per cent growth on the previous year. When the exchange started offering cryptocurrency products in 2018, it had a yearly turnover close to CHF500 million.

“It’s a confirmation of the trust and reputation of our market,” Reischuk says. “Last year, we had more than 350,000 trades in cryptocurrency products.”

Reischuk notes that it is very interesting to see the types of investors investing in cryptocurrency products. Around 50 per cent of the flow comes from Swiss trading members, banks and brokers based in Switzerland, including large retail brokers, plus while the rest of the flow comes from participants in the EU and the UK, the latter including Anglo-Saxon based arms of US investment banks.

“We see a clear trend that more and more institutional investors are trading cryptocurrencies,” she says. “If you look at the turnover breakdown by trading currencies in crypto products, 82 per cent are in US dollars, against 11 per cent in Swiss francs, which is a clear sign that there is growing international institutional demand.”

Reischuk agrees that the growth of institutional demand for these products has been surprising, insofar as much of the news around investors in the sector focusing on retail investors trading in and out of the world’s latest investment sector.

“It underlines the acceptance of the products,” she says. Cryptocurrency products listed on SIX Swiss Exchange represent 18 different coins, plus indices based on baskets of cryptocurrencies – the largest choice of currencies on any regulated exchange.

“In context, we have more than 40,000 securities trading on our market, and this is one part of our offering as a stock exchange. Our main duty is to enable our members to meet investor demand and supply on the market.

“This product segment is a game changer as we are one of the globally first regulated exchange offering cryptocurrencies products; it shows our agility and flexibility and time to market in meeting supply and demand.”

Reischuk reports daily emails pinging in with new potential prospects for cryptocurrency product listings on SIX Swiss Exchange. Last year the exchange listed products from six new issuers, and this year, they have had two new ones and a handful more in the pipeline. “It’s such a growing space with cryptocurrency underlyings including single coins and indices and I believe the award reflects the attractiveness of having a Swiss regulatory framework around these products.” 

 

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