Institutions are Bullish on BNB-Backed ETP, Amun Claims
Amun, a Swiss crypto investment product provider, has revealed growing institutional demand for its exchange-traded product (ETP) tied with Binance Coin (BNB).
The Swiss company developed a BNB-backed ETP and listed it on SIX, a Swiss stock exchange, in October. The company operates and listed multiple such crypto-backed investment products on the stock exchange, the latest being one backed with Tezos.
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A token supporting a massive decentralized ecosystem
Binance launched its native token in 2017 as an ERC-20 token which later moved to its own blockchain, Binance Chain. In Binance’s ecosystem, the token has extensive usage – the traders holding the token can receive discounts and it is crucial for investors on projects launched at Binance Launchpad.
The Malta-registered exchange is also determined to control the circulation of the token and vowed to reduce its supply eventually to attract institutions.
“Historically one of BNB’s value propositions has been the token burn, where Binance would burn a given amount of BNB equal to 20% of their quarterly profits,” Laurent Kssis, managing director and head of ETFs at Amun, told Coindesk.
Amun is also conducting a European roadshow in London, Zurich, Milan, and Scandinavia, which saw an extreme enthusiasm from the institutions with the participation of 30 institutional investors.
“[These are] qualified investors who may have a mandate to allow exposure to crypto as part of a much broader portfolio of assets,” Kssis said.
With the reputation of Binance, BNB also gained the attention of the retail traders. The coin touched its peak in June this year when a single BNB token was traded for over $36. However, the bull didn’t last long as the price slumped 58 percent from the peak with the current trading value at $15, according to Coinmarket.com.
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