Multi Cryptocurrency trading platform Huobi Pro has just launched the first world cryptocurrency Exchange Traded Fund (ETF) aimed at giving crypto retail investors sense of belonging.
Houbi made the announcement of its new product of Friday with the name HB10, which will allow investors to purchase shares in a basket of cryptocurrencies based on the firm’s recently launched benchmark index, the Huobi 10.
The Singapore-based cryptocurrency exchange firm said investors could subscribe to the cryptocurrency Exchange Traded Fund (ETF) using bitcoin, ether, USDT, or Huobi tokens.
It also pointed out that the fund has a minimum investment of roughly $100, depending on the current prices of each asset, ccn.com reports.
Whether HB10 should be called a cryptocurrency Exchange Traded Fund (ETF) remains debatable among crypto analysts in the market, since it does not trade on a regulated securities exchange as conventional ETFs do and cannot be held in conventional brokerage accounts.
Whether that is debatable or not, Huobi has taken a bold step in joining Huobi is the growing list of investment firms that have launched funds that track an index of cryptocurrencies.
Other cryptocurrency firms that have such crypto significant improvement include includes Grayscale Investments, Coinbase, and Bitwise Asset Management.
Huobi pointed out that HB10 can be purchased by retail investors with a very minimal initial investment.
Other crypto firms has restrictions to accredited investors willing to plunk down tens of thousands of dollars — or more.
Coinbase, for instance, currently requires an initial contribution of $250,000 for its index product, ccn.com pointed out.
Shares of the fund will initially trade against USDT on Huobi Pro, though the website suggests that the exchange will open up trading pairs against other coins in the future.
Investors will also be able to swap shares of the fund for the underlying assets in real time, which should help ensure that the value of the fund remains linked to its net asset value (NAV).
In the US, numerous fund providers have attempted to list cryptocurrency-based ETFs on regulated securities exchanges, but the Securities and Exchange Commission (SEC) has thus far refused to approve any of these proposals.
A Huobi spokesperson confirmed that the product would have the same regional limits as the wider trading platform, meaning that investors in some countries — including the US — will not be able to invest until Huobi Pro launches in those jurisdictions.
Huobi is an international multi-language and multi cryptocurrency digital trading platform and exchange.
It has headquarters in Singapore, and other branch offices in Hong Kong, Korea, Japan and the United States.