In an announcement to the public on Friday, Huobi has said that it is set to launch a crypto-based exchange traded fund (ETF). The investment option is similar to stock exchanging and it will also benefit retail investors by allowing investment in a basket of assets instead of just one at a time.
The announcement indicated that the investment instrument will be referred to as HB10 and is currently open for subscriptions. However, subscriptions can only be made through cryptocurrencies rather than fiat currencies.
A Replica of the Recently Launched Huobi 10
The new product will replicate the Huobi 10 index that was started recently to track the 10 different assets that are there on the Huobi Pro exchange in real time, based on their market capitalization and liquidity.
As Bitrazzi reported last week, the new index launched utilizes weighted samples to reflect the entire market performance on Huobi Pro. Through the tracking of the data, Huobi says that HB10 will be useful for risk diversification for retail investors, as well as exposing them to different major crypto assets.
The company states that availability of the product to institutional investors may “reduce the impact of institutional entry and exit” on single cryptos.
Talking to coinDesk, A Huobi representative said that that new restriction norms, similar to Huobi Pro, will be imposed on the new offering. For instance, it will be excluded from the US due to the regulatory uncertainties in the country, but investors in China will be able to access it.
Huobi on the Rise
It’s becoming clearer by the day that Huobi is on an expansion drive. The company is seeking to establish itself as one of the dominant forces in the crypto industry through offering various extra products and services.
Apart from developing new products and services, the company is seeking to increase the number of users. From May 22nd to 29th, the company ran a a Tether giveaway in Vietnam, where all new users who registered and performed different transactions on their exchange (within Vietnam) received 1 USDT per transaction, up to a limit of 500 USDT.
The multi-linguistic virtual currency platform is based in Singapore along with offices in Korea, Japan, U.S. and Hong Kong. Recently, the company announced that it is expanding its operations in Brazil, having set up an office in Sao Paulo; and they are in the process of hiring regional staff to manage the exchange. Earlier in the year, Huobi set up operations in both Canada and San Francisco. They also set up in London.
The announcement of the new offering coincides with the BitKan announcement that their KAN token will be available to trade on the Huobi Pro exchange from May 25th.
Image Credit: Deposit Photos