Bloomberg Terminal to Feature Huobi’s Crypto Index As Another Tool for the Institutional Investor

Siamak Masnavi

Singapore-based Huobi Group, which owns Huobi Pro, the world's third largest crypto exchange (by trading volume), is reported to be working with Bloomberg in order to integrate its recently launched "Huobi 10 Index" into the Bloomberg Terminal sometime in the near future.

According to Huobi, the Huobi 10 Index, which was announced and launched on 23 May 2018, is a benchmark index that "selects 10 large scale digital assets with high market capitalization and strong liquidity" with the purpose of accurately reflecting "the market performance of U.S. Dollar Tether (USDT) pairs on Huobi Pro."

The index, which on 23 May 2018 started at a base of 1000 points, is currently at 941.33. 

The current components of the index (in the order of increasing weight) are: DASH, IOST, LTC, ETC, XRP, BCH, ETH, EOS, BTC and HT.

Huobi 10 Index Components.png

Other indices are planned for release in the near future, which will "give investors a sharper snapshot of specific segments of the market, as well as funds a benchmark to compare against."

Also, at the beginning of this month, Huobi launched a tradable index product called the "HB10", which is based on the Huobi 10 Index and available through Huobi Pro. This product is designed to fully replicate the Huobi 10 Index and is rebalanced based on the constituent coin trading pairs and their weight changes. The purpose of the HB10 is to "help users attain exposure to the digital assets market with a relatively small capital outlay and also provide users with greater diversification across constituent coin trading pairs."

The Bloomberg Terminal is one of the most widely used sources for real-time financial information and is very popular with major institutional investors. On 9 March 2018, Bloomberg, in partnership with Michael Novogratz' Galaxy Digital Capital Management, launched the "Bloomberg Galaxy Crypto Index" (BGCI). The addition of the Huobi 10 index to the Bloomberg Terminal can only be seen as another sign that the crypto market is growing in maturity and thereby becoming increasingly attractive to the institution investor.