WHAT IS AN ETP?
An exchange-traded product (ETP) refers to a financial product that is publicly traded like a bond in the stock market.
Exchange-traded products also let investors diversify their investments and buy and sell like shares.
ETPs are designed to resemble an underlying index or asset’s return, with convenient share tradability and access.
TYPES OF EXCHANGE-TRADED PRODUCTS
EXCHANGE-TRADED FUNDS (ETFS)
Exchange-traded funds (ETFs) are investment funds that trade as a single security on the stock exchange. Since the introduction of ETFs in 1993, they’ve expanded significantly in terms of range and variety. Usually, an ETF tracks an index fund, such as the S&P 500, but it can also follow a market, commodity, industry, or even a currency. The price of an exchange-traded fund will increase and decrease, much like most investments. The ETFs trade all through the day in the same way a stock trades.
EXCHANGE-TRADED COMMODITIES (ETCS)
Exchange-traded commodities (ETCs) are debt instruments that do not come with interest payments. They are designed to provide access to an individual product or a basket of items. The ETC framework is often used to provide investors with significant exposure to currencies, either as individual currency pairs or as a currency basket.
EXCHANGE-TRADED NOTES (ETNS)
Similar to ETCs, exchange-traded notes (ETNs)are debt securities that do not pay interest. These are only intended to track the return on the related asset or index. However, the issuing entity of both is different. While Special Purpose Vehicles (SPVs) with segregated reserves issue ETCs, ETNs are usually issued by banks, do not hold any assets, and are unsecured. Although the yields of ETNs correspond to the underlying index or asset, they are identical to unsecured and classified bonds.
CHARACTERISTICS OF ETPs
INTRODUCTION TO ETPs
Cost–effective and transparent way of gaining exposure to a benchmark or asset as management fees are generally lower than active and index mutual funds
TRACKS AN UNDERLYING
Aims to provide the same return as an underlying benchmark or asset, offering a diversified investment in a single transaction
Shares can be created as necessary to meet demand
LISTED ON EXCHANGE
Investment performance is accessible intraday through the provision of live prices
TRADES LIKE SHARES
As simple to buy and sell as shares are any time the market is open
Liquid asset that is supported by pool of authorised participants and market makers
WHY USE AN ETP?
ETP‘s can provide access to an entire index, or alternative asset class with a single trade
ETP‘s can be bought and sold whenever the stock exchange is open as prices are quoted throughout the day
ETP‘s provide a cost effective way to gain diversification through a benchmark or exposure to assets previously difficult to access
Unlike other investment vehicles, ETP‘s constituents are published on a daily basis — this transparency makes it easier for the investor to see exactly what they own.
ETP‘s are listed and traded in a similar way as shares through the same brokers and platforms.
DYNAMIC MULTI ASSET PLATFORM
OVERVIEW OF DMAP CRYPTO ETP
Purchase on Exchange or Directly from Authorised Participants
Ease of Diversification
BEST IN CLASS
DMAP ETPs are 100% physically collateralised, backed by the underlying assets.
DMAP ETPs have low all-in costs for digital assets financial products
DMAP solely uses best-in-class, well known custodians.
DMAP ETPs are frequently traded and due to this fact our ETPs enjoy the low spreads for this product type.
DMAP collaborates with top market makers and ensuring deep liquidity and fast execution.
DMAP ETPs are listed on one of the worlds reputable stock exchanges: The SIX Swiss Exchange in Zürich and the BX Swiss Exchange in Bern.