Huobi, the Singapore-based cryptocurrency exchange that successfully raised over USD 300 million in a recent token sale, announced on Friday the release of its crypto index tracking product, the HB10.
HB10 will directly replicate the HUOBI 10 index, tracking the top 10 best known digital assets with the largest market values and liquidity, said the company. HB10 grants investors broad exposure to the cryptocurrency market while also offering insights into how the overall market is behaving. Huobi also warned that HB10 will not be available to US investors, as similar ETF plans have been halted by regulators in the past.
A statement released by Huobi gave additional details, “HB10 will allow retail investors to attain exposure to the digital assets market with a relatively small capital outlay. Through HB10, it is possible to obtain the growth benefits of mainstream digital currencies while diversifying risks. At the same time, it also provides access to the market for institutional investors, reducing the impact of institutional entry and exit on a single coin. The simultaneous opening of the primary and secondary markets also provides arbitrageurs with arbitrage opportunities. As an index product, HB10 can meet the diverse needs of different types of customers.”
Huobi said that HB10 tokens are available June 1-7, with a subscription fee to be paid at the time of acquisition of between 0.1 percent and 0 percent, based on the number of tokens acquired. Investors seeking to exchange their HB10 tokens for constituent currencies will be able to do so at a rate not greater than 10 percent of the previous day’s trading volume, with the net value of HB10 funds updated every 15 seconds and the fund composition rebalanced once per quarter. HB10 will be listed as a USDT trading pair, and initial tokens can be purchased in USDT, ETH, BTC or Huboi Tokens sold in the recent Huobi crowdsale.
