The first week of March 2019 marked a pivotal moment for cryptocurrency regulation and institutional adoption, as Switzerland’s SIX Swiss Exchange prepared to list an Ethereum-backed exchange-traded product (ETP) while regulatory voices in the United States grew louder in their calls for a comprehensive framework governing digital assets. These developments, unfolding against a backdrop of depressed crypto prices, signaled that the institutional infrastructure for cryptocurrencies was being built even as retail enthusiasm remained muted.
TL;DR
- Amun AG listed its third crypto ETP — an Ethereum-backed product — on the SIX Swiss Exchange in early March 2019
- The AETH ETP was 1:1 collateralized by physical Ethereum held by an independent custodian
- SIX Swiss Exchange had announced plans in November 2018 for five cryptocurrency-based ETPs
- Former CFTC Chairman Timothy Massad published a Brookings paper calling for stronger crypto regulation
- Hawaii introduced new virtual currency legislation on March 1, 2019
The Amun AG Ethereum ETP: A European First
On March 5, 2019, Amun AG — a Zug-based fintech company — successfully listed its Ethereum-linked Exchange Traded Product (ETP) on the SIX Swiss Exchange, Switzerland’s principal stock exchange. The product, trading under the ticker AETH, represented Amun’s third crypto ETP listing, following earlier launches of HODL (a diversified crypto index tracking the top five digital assets) and ABTC (a Bitcoin-backed product).
The AETH ETP was structured as a fully collateralized instrument, with the underlying Ethereum tokens held by an independent custodian on a 1:1 basis relative to the value of the issued ETPs. The ETH serving as collateral was purchased on the open market or through direct purchases from designated primary sources of liquidity, including reputable authorized exchanges. The management fee was set at 2.5%.
The significance of this listing cannot be overstated. While the United States was still years away from approving a spot Bitcoin ETF, Switzerland was already providing institutional investors with regulated, exchange-listed exposure to Ethereum — the world’s second-largest cryptocurrency by market cap, then trading at approximately $134.21. The SIX Swiss Exchange had first revealed its plans in November 2018 to list five cryptocurrency-based ETPs covering Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin.
Brookings Paper: A Call for Regulatory Action
The same week, the Brookings Institution published a significant paper by Timothy Massad, former chairman of the Commodity Futures Trading Commission (CFTC), titled “It’s Time to Strengthen the Regulation of Crypto-Assets.” The paper represented one of the most comprehensive calls from a former senior U.S. financial regulator for a more robust regulatory framework covering the cryptocurrency industry.
Massad’s paper argued that existing regulatory gaps left investors vulnerable and that the patchwork of federal and state oversight was insufficient to address the unique challenges posed by digital assets. He highlighted the need for clearer token classification standards, stronger exchange oversight, and enhanced consumer protection measures. The timing was notable: while the SEC had issued its 2017 DAO Report providing initial guidance on when tokens might qualify as securities, the regulatory landscape remained murky two years later.
The Brookings paper referenced CoinMarketCap exchange rankings data as of March 2, 2019, underscoring the massive scale of unregulated crypto trading activity taking place on exchanges worldwide. With the total cryptocurrency market capitalization hovering around $130 billion and 24-hour trading volumes regularly exceeding $15 billion, the stakes of regulatory inaction were substantial.
State-Level Crypto Legislation Emerges
In the United States, regulatory activity was not limited to federal discussions. On March 1, 2019, the Hawaii state legislature introduced a bill addressing virtual currency and blockchain technology regulation. While state-level crypto legislation was not new — Wyoming had already passed several crypto-friendly bills earlier in 2019 — the Hawaii proposal reflected a growing trend of individual states grappling with how to regulate digital assets in the absence of comprehensive federal guidance.
The state-by-state approach created a fragmented regulatory environment that posed challenges for crypto businesses operating nationally. Companies had to navigate a complex web of money transmitter licenses, securities regulations, and consumer protection laws that varied dramatically from one jurisdiction to another. This regulatory patchwork was one of the key issues Massad’s Brookings paper sought to address.
The Swiss Model vs. the American Approach
The contrast between Switzerland’s proactive embrace of crypto financial products and the United States’ cautious regulatory stance was stark. Switzerland’s FINMA (Swiss Financial Market Supervisory Authority) had established clear guidelines for crypto businesses, creating a regulatory environment that encouraged innovation while maintaining investor protections. The SIX Swiss Exchange, as a regulated securities exchange, provided the institutional credibility that crypto ETPs needed to attract sophisticated investors.
In the United States, the SEC had taken a markedly different approach, focusing primarily on enforcement actions against projects it deemed to have violated securities laws. While this protected investors from fraudulent offerings, critics argued it also stifled legitimate innovation and drove crypto businesses to more welcoming jurisdictions — exactly the dynamic playing out with Amun AG’s Swiss-listed products.
The Ethereum ETP’s listing also raised interesting questions about the regulatory classification of Ethereum itself. While the SEC had suggested that Bitcoin was not a security, its position on Ethereum remained somewhat ambiguous — a point that Massad’s paper implicitly addressed by calling for clearer categorization standards.
Why This Matters
The events of early March 2019 represented an inflection point in the relationship between cryptocurrency and traditional finance. The Amun AG Ethereum ETP demonstrated that regulated, institutional-grade crypto investment products were not just theoretical — they were real, tradeable, and available to qualified investors through established exchanges. This was a critical precedent that would eventually pave the way for the wave of crypto ETFs and ETPs that launched in subsequent years.
Simultaneously, the Brookings paper from a former CFTC chairman signaled that the regulatory conversation was evolving beyond enforcement toward structural reform. The tension between innovation and regulation — between Switzerland’s permissive framework and America’s enforcement-heavy approach — would define crypto policy debates for years to come. For market participants watching from the sidelines of the 2019 bear market, these institutional and regulatory developments offered a glimpse of the mature crypto ecosystem that was slowly but steadily taking shape.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Cryptocurrency investments and regulatory landscapes are subject to significant risk and change. Always consult qualified professionals before making investment or compliance decisions.
Hawaii legislation the same week Switzerland lists an ETH ETP. one country builds infrastructure, the other writes press releases
the SIX Swiss Exchange was way ahead of everyone on crypto ETPs. Amun AG listing a physically backed ETH product in 2019 while the SEC was still debating what a security is says a lot about regulatory speed
Stefan W. Amun was listing physically backed products in 2019 while the SEC was still debating whether BTC was a commodity. European regulators actually moved first on institutional crypto access
meanwhile the US is still arguing about spot ETFs in 2024. Switzerland had physical ETH products in 2019
switzerland had physical eth products in 2019 while us was still debating
Amun AG was physically backed and listed on a major exchange in 2019. SEC was still sending Wells notices to anyone who tried the same thing in the US
zurich_take exactly. Massad published that Brookings paper saying the US needed a coordinated framework and got ignored for 5 years. look where we are now
massad’s paper calling for comprehensive regulation in march 2019 is worth re-reading. he argued for a coordinated federal framework instead of the patchwork of SEC, CFTC, and state-level approaches. five years later and the US is still doing exactly what he warned against — fragmenting oversight across agencies
Hawaii introducing crypto legislation the same week Switzerland is already listing products. the gap between US and European crypto infrastructure was massive back then
SIX was so far ahead. they had multiple crypto ETPs trading while US regulators were still figuring out if BTC was a commodity or a security
Massad calling for regulation in 2019 and four years later the US still doesnt have a coherent framework. bureaucracy moves at its own speed i guess
massad calling for regulation in 2019 and here we are in 2024 with no clear framework
switzerland approving crypto ETPs while the US was still debating whether btc was a security. the regulatory gap between jurisdictions was massive in 2019
etp_watcher is exactly right about the regulatory gap. SIX Swiss Exchange listing a physically backed ETH product from Amun in 2019 while the SEC couldn’t decide if BTC was a commodity created a two-tier market. US investors missed years of institutional access that Europeans had
the AETH ETP was physically backed and the US still took 5 more years for a spot ETF. that regulatory gap cost US investors billions in missed upside
Frederik B. physically backed matters because it means actual ETH in cold storage, not synthetic exposure. 21Shares and Amun built the template everyone else copied
Six Swiss Exchange listing a bitcoin ETP alongside traditional ETFs was the institutional legitimization moment that most people credit to the US spot ETFs years later
camille_bouchard makes the critical point that institutional legitimization happened in switzerland before the US. the narrative that the 2024 US spot ETFs were the breakthrough moment erases the five years of european crypto ETPs that preceded them. Amun and 21Shares were the real pioneers