Cryptocurrency exchange Huobi will launch exchange-traded Fund (ETF) HB10. This product will open a retail investors access to your digital assets instead of individual sentences.
Investment tool is already open for subscription, but at the moment only available cryptocurrency payments. It is unknown whether future payment option is Fiat money. In addition, work will be restricted legally HB10: product will be available to investors from China, but closed to US residents due to the uncertain legal status of the cryptocurrency ETF.
The representative Huobi announced that the Fund is a kind of replication of a market index Huobi 10, reflecting the present state of capitalization and liquidity of dozens of different assets presented on the exchange Huobi Pro.
The index gives an idea about the situation on the market as a whole, evaluating each of the 10 assets in a pair of Tether (USDT), using the method of weighted average calculation. Using these data, HB10, the company claims, will help investors to diversify risks, while giving the opportunity to invest in a major cryptocurrency.
HB10 can use and institutional investors. According to Huobi, their participation in the ETF could in theory “reduce the impact of entry and exit of institutional investors out of the markets individual cryptocurrency”.
Despite the lack of service in the United States, Huobi was able to establish a presence in the country by opening a branch and obtaining a license for cryptocurrency trading. The exchange continues expansion abroad: yesterday it became known about its entering the Brazilian market.