Why wait for Wall Street to launch exchange traded funds following the crypto markets? Huobi, the Singapore-headquartered cryptocurrency exchange, has decided to create its own ETF style instrument based on its recently launched index of ten digital assets.
Also Read: This Week in Bitcoin: Digital Money Makes the World Go Round
Huobi Index Tracker Fund
The company says that the Huobi 10 index tracker product, HB10, will allow retail investors to attain exposure to the digital assets market with a relatively small capital outlay while diversifying risks. It is also meant to attract more institutional investors, by reducing the impact of institutional entry and exit on a single coin. Investors may purchase HB10 shares exclusively with UDST, BTC, ETH and Huobi’s own HT. The minimum purchase for each account is 100, or 0.01 BTC, 0.2 ETH, and 50 HT.
Huobi only announced launch of the benchmark index less than two weeks ago, explaining at the time it is meant to reflect the market performance of Huobi Pro in terms of USDT. The assets in it are divided into four categories: Coins, Platforms, Applications and Physical Assets tokens, depending on the transaction volume value of the previous quarter. Right now the index’s components include HT at 29.3%, BTC at 23.1%, EOS at 17.3%, ETH at 10.9%, BCH at 5.2%, XRP at 4.1%, IOST at 3.1%, LTC at 3%, ETC at 2.3%, and DASH at 1.5%.
$93 Million Crypto VC Fund
It was also revealed on Friday that Huobi has joined forces with Chinese VC New Margin Capital and Korean online brokerage Kiwoom Securities to jointly launch a 100 billion won ($93 million) investment fund. It will invest in blockchain startups in both China and Korea, and is meant to help collaborations among the two Asian ecosystems. According to China Money Network, Korean banks including Korea Development Bank and Industrial Bank Of Korea will be investing in the fund as limited partners. And Mirae Asset Financial Group, an independent financial services group headquartered in Seoul, is also joining the fund as an investor.
Besides Huobi’s new ETF, enabling people to invest in multiple coins as once has been a focus in the industry recently. Last month, Circle, the Goldman Sachs-backed Boston-headquartered company, announced a new feature called “Buy the Market,” allowing users to buy seven assets in one click, including BTC, BCH, ETH, ETC, LTC, ZEC and XMR.
What do you think about this new investment instrument? Share your thoughts in the comments section below.
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