SIX Swiss Exchange in Zurich recently listed a unique exchange traded fund (ETF), issued by Leonteq Securities, Guernsey Branch: the Tracker Certificate on the Global Asset Appreciation Index. This financial instrument replicates the price movements in a dynamic, actively managed index, that invests in liquid markets worldwide, in particular the niche areas that focus on physical gold and cryptocurrencies.
While gold has long been seen and used a hedge against inflation as well as a speculative investment choice, crypto assets are more recent entrants to the institutional investing landscape. The coronavirus pandemic has ravaged global financial markets leaving some businesses scrambling for scraps. This has essentially affected stock prices worldwide with all the leading indices plunging before performing a convincing rebound in subsequent months. This increased market uncertainty has led many investors to diversify their portfolio to traditional safe-haven assets like gold, which has since hit a new all-time high. This trend demonstrates how resilient the value of gold can be, even during a financial crisis.
According to Bob Juchter van Bergen Quast, CEO of the European Chamber of Digital Commerce, we are in the early stages of a longer-term gold and crypto assets growth trend:
The cryptocurrency market has established ways to capitalize on the stability of the gold price and its resilience during a financial crisis. This concept brings a specific class of investors to the market that would have otherwise missed out because of a lack of enough capital to diversify their investments.Bob Juchter van Bergen Quast, CEO of the Swiss Chamber of Commerce in The Netherlands
SIX Swiss Exchange
SIX Swiss Exchange, based in Zurich, is Switzerland’s principal stock exchange (the other being Berne eXchange). SIX Swiss Exchange also trades other securities such as Swiss government bonds and derivatives such as stock options. SIX Swiss Exchange is completely owned by SIX Group, an unlisted public limited company itself controlled by 122 banks or financial institutions.
This post by the European Chamber of Digital Commerce is primarily provided for information purposes and does not constitute a recommendation, an offer or a solicitation of an offer to buy financial products.