Cryptocurrency exchange OKEx launched its cryptocurrency index Fund.
The product, called OK06ETT, will allow investors to invest in a basket of 6 cryptocurrency through the Fund whose shares will be traded on the market against other digital currencies.
At the time of launch OK06ETT includes Bitcoin, Ethereum, Bitcoin Cash, and OKB EOS — utility-token exchange. Reportedly, the Fund will be traded against pegged to the dollar token USDT cryptostroma Tether. Investors also can redeem the Fund for the underlying assets, which will prevent too great a divergence of share price and net asset value (NAV). During this operation repayment for USDT or one of the base currencies will be subject to a fee of 0.2%.
Thus, one of the largest cryptocurrency exchanges OKEx was the last of the giants of the industry that started the cryptocurrency index Fund. More recently, a similar product, namely exchange-traded Fund, positioned as a “first cryptocurrency ETF” in the world, was presented by the Huobi exchange. It is noteworthy that the team Huobi joined by the former CEO OKEx Chris Lee (Chris Lee).
As ETF Huobi, OK06ETT open to retail investors that meet the requirements OKEx, and minimum investments equal to approximately $100.
Other cryptocurrency index funds, including those that were recently launched Coinbase and Grayscale Investments, restrict the participation, preferring to work in this direction only with accredited investors. These funds, in contrast, involve a high minimum investment threshold of $50 000 in the case of Grayscale and $250,000 in the case of Coinbase, but offer the possibility of using accounts that have advantages from the point of view of taxation. On the other hand, these conventionally-structured funds can be listed on the brokerage platforms, working on-counter model (OTC) that will allow retail investors to buy shares, even though such trade would imply a significant excess of the net assets.
In any case, the growth of this niche grocery indicates a gradual transition from speculative trade cryptocurrencies to large bets on the entire ecosystem.
Recall that in the application for the cryptocurrency brokers Invest recently Circle has a “Buy the Market” that allows users — mainly for beginners on the market — invest in all assets presented on the platform in the shares, calculated on the basis of market capitalization.