Huobi Expands Horizons: Exchange Traded Fund Launched

Huobi, a cryptocurrency trading platform based in Singapore, has launched a crypto-based exchange-traded fund (ETF) known as Huobi 10 (HB10). The fund mirrors the Huobi 10 index, tracking the top 10 virtual currencies based on market value and liquidity. HB10 is currently available for subscription using cryptocurrencies but not fiat currencies, with subscription fees varying based on the investment amount. The fund will be tradable on Huobi Pro, subject to the exchange's restrictions, but not available to U.S.-based customers due to regulatory concerns raised by the SEC.

Huobi Launches Exchange Traded Fund, Expanding into New Markets and Products

Singapore, June 1, 2018 - Huobi, the prominent cryptocurrency trading platform headquartered in Singapore, has announced the launch of its crypto-based exchange traded fund (ETF), marking a significant expansion into new regions and product offerings.

Huobi 10 (HB10) ETF

The newly launched fund, Huobi 10 (HB10), is designed to replicate the Huobi 10 index, which comprises the top 10 cryptocurrencies based on market capitalization and liquidity. It provides investors with a diversified portfolio that enables them to invest in a basket of cryptocurrencies in a single transaction.

Subscription Details

HB10 is currently available for subscription, with certain limitations. Potential investors can purchase the fund using cryptocurrencies such as Bitcoin (BTC), Ether (ETH), the dollar-pegged Tether (USDT), and Huobi's native cryptocurrency, Huobi Token (HT). Investments using fiat currency are not permitted at this time.

After the subscription period, HB10 will be tradable on Huobi Pro, Huobi's existing crypto-to-crypto trading platform. The fund will be subject to Huobi's standard trading restrictions, making it accessible to global investors, including those in China, but excluding U.S.-based customers due to regulatory considerations.

Subscription Fees

Huobi charges subscription fees based on the amount invested. Investors investing between 100 and 500,000 USDT will be charged 0.10 percent, while investments between 500,000 and 1 million USDT will incur a fee of 0.05 percent. Institutional investors investing over 1 million USDT are exempt from subscription fees. The maximum investment amount is capped at 10 million USDT.

Global Reach, Regulatory Considerations

HB10's availability to global investors underscores Huobi's commitment to expanding its presence in new markets. However, the exclusion of U.S.-based customers highlights the ongoing regulatory challenges associated with cryptocurrency ETFs in the United States.

The U.S. Securities and Exchange Commission (SEC) has expressed concerns about investor protection issues related to cryptocurrency ETFs. As a result, the SEC has not yet approved any cryptocurrency-related ETFs, leading to their absence from the U.S. market.

Huobi's Recent Expansionary Moves

The launch of the HB10 ETF is the latest in a series of strategic moves by Huobi in recent weeks. Earlier this week, Huobi partnered with Chinese investment firm NewMargin Capital and South Korean securities firm Kiwoom Securities to establish a $93 million fund for investments in blockchain startups. Additionally, the exchange has announced plans to open an office in Brazil, further expanding its global reach.

These expansionary initiatives demonstrate Huobi's commitment to driving the adoption of cryptocurrencies and blockchain technology worldwide. By offering innovative products and expanding into new markets, Huobi aims to make cryptocurrencies more accessible and mainstream, while navigating the regulatory landscape and addressing investor protection concerns.