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

MoneyGram CEO: MoneyGram Transactions + Ripple’s XRP-Powered ODL = ‘Magic’

Siamak Masnavi

On Friday (November 8), at Ripple's Swell conference in Singapore, MoneyGram Chairman and CEO Alex Holmes talked about his company's use of Ripple's XRP-powered On-Demand Liquidity (ODL) product, which used to be called xRapid, for cross-border payments.

Ripple's Partnership With MoneyGram

Californian FinTech company Ripple announced on June 17 that it entered into a strategic partnership with MoneyGram, one of the world's largest money transfer companies. Here is how Ripple's blog post explained the deal:

Through this partnership, which will have an initial term of two years, Ripple would become MoneyGram’s key partner for cross-border payment and foreign exchange settlement using digital assets. In conjunction with the partnership, Ripple has agreed to provide a capital commitment to MoneyGram, which enables the company to draw up to $50 million in exchange for equity over a two-year period.

Holmes, MoneyGram's CEO, said at the time:

Through Ripple’s xRapid product, we will have the ability to instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management.

Then, on August 2, during his company's Q2 2019 Earnings Call, Holmes said that MoneyGram had started "transacting on the Ripple xRapid platform"

Three months later, during MoneyGram's Q3 2019 Earnings Call, which took place on November 1, once again, the MoneyGram CEO had some exciting news to report about his company's partnership with Ripple:

Today, we've integrated Ripple onto our standard Treasury process to execute foreign currency trades 24/7. Over the quarter, we've continued to increase our usage of Ripple’s on-demand liquidity product for a portion of our daily funding needs in Mexico.

MoneyGram CEO's Comments at the Swell 2019 Conference

As Ripple reported earlier today (November 8), on day two of the two-day Swell 2019 conference in Singapore, Holmes talked to Ripple CEO Brad Garlinghouse about MoneyGram's experience with using Ripple's ODL product for cross-border transactions.

First, Holmes talked about the global remittance market:

What has amazed me the most is the amount of pressure that legacy players face.The fundamental challenge of moving money around the world is that there isn’t a lot of coordination between financial institutions and there should be more solutions to connect all of these pieces. More and more companies are looking to make the economy move like it should.

Next, the MoneyGram CEO talked about how his company's innovations lab is helping MoneyGram explore the use of emerging technologies for improving the company's services:

We’re migrating our legacy systems to the cloud and looking at how we can use blockchain distributed ledger technology to improve our core systems.

His most interesting comments though were about Ripple's ODL product, which uses XRP as a bridge currency for cross-border payments:

What I love about ODL is that we’re completely at the forefront of this technology … We’re able to settle billions of dollars in seconds. The magic really comes from pairing MoneyGram transactions with Ripple’s ODL.

According to Ripple, the MoneyGram CEO also announced on stage at Swell 2019 that "the company is currently moving 10% of its transaction volume through ODL between the United States and Mexican borders and planned to expand into four more corridors by the end of this year."

Featured Image Courtesy of MoneyGram