Cryptocurrency Exchange Huobi Launches Crypto-Based Exchange-Traded Fund

  • Huobi, one of the biggest cryptocurrency exchange in the world, has revealed its launching a crypto-based exchange-traded fund (ETF).
  • The ETF is available to investors throughout the world, exept those in the US.

Singapore-based cryptocurrency exchange Huobi is launching a crypto-based exchange-traded fund (ETF), which is reportedly going to help retail investors gain exposure to the cryptocurrency ecosystem by investing in a basket of cryptos, instead of going with one.

According to a recently published announcement the ETF – dubbed HB10 – is already open for subscriptions, and can only be purchased with cryptocurrencies, not fiat. Per the announcement, investors can buy the ETF with bitcoin (BTC), ethereum (ETH), tether (USDT), and Huobi tokens (HT)

Huobi is set to charge a tiered trading fee on the ETF, which can go to zero depending on the amount investors go with. While an investment of 500,000 USDT or less is going to face a 0.1 percent fee, an investment that comes close to 1 million USDT will have a 0.05 percent fee. For investments over 1 million USDT, no fee will be charged.

The company’s announcement adds:

“The minimum subscription amount is either 100 USDT, 0.01 BTC, 0.2 ETH or 50 HT for each account, while the maximum amount is 10 million USDT or equivalent. Each day, the successful subscribed amount is confirmed by the equivalent freezing of digital assets. The total amount of HB10 shares a user has successfully subscribed will be confirmed after the subscription period ends.”

Huobi

The ETF itself is based on Huobi’s 10 index, which essentially lists the 10 largest cryptocurrencies in terms of market capitalization and liquidity traded on the Huobi Pro platform. Every crypto listed on said platform traded against USDT may qualify to be included on the index.

The company notes that since the ETF is also going to be available for institutional investors, it can potentially “reduce the impact of institutional entry and exit.” Notably, the product is going to be available to investors throughout the world – including in China – but currently isn’t available for US-based investors.

This, as the country hasn’t yet made any clear moves when it comes to cryptocurrency exchange-traded funds. Earlier this year, the US Securities and Exchange Commission (SEC) revealed these products were, at the time, off the table

Ethereum Was Behind 85% of Dapps' $12 Billion Volume in Q2 2020

The total transaction volumes of decentralized applications (dapps) in the cryptocurrency space hit $12 billion in the second quarter of this year, rising by $4.5 billion compared to the first quarter. Etheruem dapps accounted for 85% of the volume.

According to DappRadar’s Industry Review report, there are more than 70,000 active wallets across 13 different blockchains interacting with the cryptocurrency space. The top blockchains were EOS, TRON, and Ethereum, with the latter representing $10.2 billion of the $12 billion volume seen in Q2.

Ethereum’s large transaction volume was partly fuelled by Compound and the launch of the COMP token, which led to a “yield farming” trend, in which users were interacting with the protocol as much as possible to receive COMP tokens. Compound saw $1.2 billion move through it.

The yield farming trend saw Ethereum gas prices and transaction fees increase, which according to the report did not stop Ethereum dapps from thriving in general. It did, however, contribute to an 80% drop quarter-on-quarter for ETH gaming dapps, as high gas prices are “killing” their activities on the cryptocurrency’s network.

Despite Ethereum’s growth, EOS and TRON (TRX) dapps have also seen their activity increase in the second quarter of the year. According to the report in only three months, TRON’s transaction volumes on decentralized applications surged by over 17,200%.

The rise was largely attributed to Oikos.cash, a TRON-based version of the Compound lending protocol.  While TRON’s DeFi growth has been notably, DappRadar pointed out that most dapps on its blockchain are still in the “gambling” and “high risk” categories.

The EOS blockchain has still been enduring the effects of the EIDOS token airdrop, which put the network into “congestion mode.” The airdrop clogged the network and as a result, from 2019 to 2020 wallet activity on decentralized applications dropped 53%.

So far this year, $1.9 billion have been transacted on decentralized applications using the EOS blockchain, thanks to two dapps: Crypto Dynasty and Upland. DappRadar’s report also shows that two other blockchains are growing thanks to gambling dapps: WAX and ThunderCore.

Featured image via Pixabay.