Vontobel launches a certificate on Ether, offering investors simple and transparent access to this cryptocurrency

Insights, Innovation, Technology
5/17/2019 Reading time: 2 minute(s)

After being the first issuer in the German-speaking world to develop participation certificates on Bitcoin and Bitcoin Cash, Vontobel is now launching a further certificate that allows investors to participate simply and transparently in the Ether currency rate in US dollars.

Like Bitcoin, probably the best-known cryptocurrency, Ether is also based on blockchain technology. Unlike Bitcoin, however, Ether is not a pure cryptocurrency but the payment token (i.e. the "currency") within the Ethereum network. This network in turn is a distributed system in the field of financial technology. With a market capitalization of currently more than USD 18 billion, ether is the second most important cryptocurrency after Bitcoin. Investors are therefore very interested in diversification opportunities in the cryptocurrencies asset class.

Vontobel is now launching the first open-end certificate on Ether. It enables a linear participation in price gains and losses on Ether in US dollars without a maturity limit.

Following the successful launch of the first Bitcoin and Bitcoin Cash certificates as well as mini-futures on Bitcoin in Switzerland and Germany, the listing of the Ether participation certificate is a further milestone. The Ether certificate is an interesting alternative to a direct investment in the cryptocurrency and brings investors some important benefits: The certificate is exchange-tradable, i.e. investors can take advantage of the trading hours, market-making quality requirements, liquidity, and settlement of regulated exchanges. Investors do not have to operate on unregulated cryptoexchanges with non-transparent settlement processes and worry about the digital safekeeping of their private wallet. Vontobel assumes these processes and services as the issuer of the certificate. However, investors must take Vontobel's issuer risk and the market risk (price risk) of the underlying asset – Ether – in US dollars into account. There is no currency hedging against the US dollar. As a bond, the certificate is not subject to any deposit protection.

"With the new Ether certificate, investors have for the first time the opportunity to make simple and transparent investments in Ether without a maturity limit. As one of the leading providers of structured products, Vontobel is once again demonstrating its technological leadership and innovative strength by adding another cryptocurrency to its existing range of crypto certificates. Vontobel thus offers investors enhanced investment opportunities and diversification opportunities," said Roger Studer, Head of Vontobel Investment Banking.


Vontobel Investment Banking
Vontobel Investment Banking creates specialized investment solutions for private and institutional clients. We follow a customer-centered digital business model, manage risks carefully, and build compelling service packages to get our clients ahead. We emphasize on truly understanding our clients’ needs. We use our expertise to anticipate trend reversals, risks as well as opportunities, in order to successfully exploit them for you. We only do, what we master and develop solutions we believe in. We take clear decisions and act with determination. We are proud of our specialized offering, which includes structured products, transaction banking, corporate finance, brokerage, as well as solutions for External Investment Advisors, and digital platforms. For our competence in Research, we regularly get awarded. This is how we create added value for you.

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