Cryptocurrency Exchange Traded Fund Launched By Huobi

Announcements, Investing, News | June 4, 2018 By:

Huobi, the third largest cryptocurrency exchange by trading volume, has launched a cryptocurrency exchange traded fund (ETF) targeted at retail investors.

Called HB10, the crypto-based ETF will replicate the Huobi 10 index, which was recently launched to track the exchange’s 10 top-traded digital assets against Tether (USDT) in real time, using a weighted average calculation method. Huobi’s ETF will allow retail investors to attain exposure to the digital assets market with a relatively small capital outlay while diversifying risks. It will also allow investors who do not want to follow individual crypto assets to buy into the general market trend and disregard the ‘noise’ of individual coins.

The company said that during the subscription period, traders can exchange HB10 product with USDT, bitcoin (BTC), ethereum (ETH) or Huobi’s native token (HT). Three days after the subscription period is over, HB10 can be traded in USDT on Huobi Pro. Subscriptions are limited to a range of between 100 USDT and 10 million USDT or equivalent for each account.

The new product will be available to global investors, including those in China, but not US-based customers, given regulatory uncertainty over crypto-based ETFs in the country.

Huobi also announced that it has joined forces with Chinese investment firm NewMargin Capital and South Korean securities firm Kiwoom Securities to jointly launch a 100 billion won ($93M USD) investment fund. The fund will be used to invest in blockchain startups and foster collaboration between South Korea and China.

Korean banks including Korea Development Bank and Industrial Bank Of Korea will be investing in the fund as limited partners. While Mirae Asset Financial Group, a Seoul based financial services group, is joining the fund as an investor.