The world’s first cryptocurrency exchange-traded fund (ETF) targeted at retail investors has been launched by Huobi- the Singapore-based exchange. As an investment option that will allow retail investors to gain exposure to a basket of assets all at once. The company’s announcement said that its new product — called HB10 will duplicate the Huobi 10 index which has been fabricated to track the top 10 virtual currencies or those with largest market value and most liquidity. It is now open for subscriptions but with certain limitations.
HB10 may be purchased with cryptocurrencies like bitcoin(BTC), ether(ETH), dollar-pegged cryptocurrency tether (USDT), and the Ethereum-based Huobi tokens(HT). Fiat currency is not allowed for investment. HB10 is tradable on the exchange with tether after subscription period.
HB10 – Open For Retail Investors
Since HB10 can be purchased by retail investors with a very less initial investment. Subscription fee is charged based on the amount invested. Investments between 100 to 500,000 USDT are charged 0.10 percent and 500,000 to 1 million USDT are charged 0.05 percent. Institutional investors with more than 1 million USDT pay no fee. The maximum investment is 10 million USDT. Shares of the fund will initially trade against USDT on Huobi Pro.
Huobi’s existing crypto-to-crypto trading platform
Huobi Pro will be the platform where the funds will be traded. There will certainly be limitations such as the fund will be available to global investors, including those in China. But under the U.S. regulations for cryptocurrency ETFs, the funds will not be available for U.S. based customer.
Possible Outcome In Near Future
In the future, the exchange will allow trading pairs against other coins. Swapping shares of the fund in real time by investors seems possible in near future.