Cryptocurrency buying and selling platform Huobi is launching a crypto-based exchange-traded fund (ETF), an funding choice that may permit retail traders to realize publicity to a basket of property as a substitute of simply one by one.
The corporate mentioned in an announcement on Friday that the funding instrument – known as HB10 – is now open for subscriptions, although it solely accepts purchases utilizing cryptocurrencies as a substitute of fiat currencies.
In response to the agency, the brand new product will replicate the Huobi 10 index, which was lately launched to trace 10 totally different property on the Huobi Professional alternate in actual time, primarily based on their market capitalization and liquidity.
As beforehand reported by CoinDesk, the index makes use of weighted samples to mirror the general market efficiency on Huobi Professional. By monitoring that knowledge, Huobi touts that HB10 will assist to diversify dangers for retail traders whereas giving them publicity to main cryptocurrency property.
The corporate additional added that because the product may also be accessible for institutional traders, it may doubtlessly “cut back the affect of institutional entry and exit” on single cryptocurrencies.
In the meantime, an organization consultant instructed CoinDesk that the brand new providing could have related restrictions as Huobi Professional. As an illustration, whereas it can nonetheless be accessible for traders from China, the brand new service notably excludes these from the U.S., given regulatory uncertainty over cryptocurrency-related ETFs within the nation.
Market index picture through Shutterstock
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