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

Chinese Ride-Sharing Giant Didi to Test PBoC's Central Bank Digital Currency

Didi Chuxing, a Chinese ride-sharing giant that bought Uber’s business in the country in 2016, is forming a task force to design and implement a trial of China’s central bank digital currency (CBDC) on its platform.

According to an announcement published by the firm, Didi signed an agreement with the People’s Bank of China’s (PBoC’s) Digital Currency Research Institute to test the digital yuan, known as the Digital Currency Electronic Payment (DCEP).

The announcement reads (roughly translated):

The digital economy has become an important engine driving the high-quality development of our economy, and the legal digital currency system will become an important infrastructure in the development of the digital economy.

Specific details on how the DCEP will be integrated and tested on Didi’s services are not yet clear. Some expect this to be the first real-world application of the central bank digital currency given Didi’s popularity.

The firm, backed by Softbank and Apple, had over 550 million users last year and serves 30 million rides per day on average. Didi already accepts other digital payment methods available in the country, including Alipay and WeChat Pay.

As CryptoGlobe reported, China has been developing its central bank digital currency since 2014 and started testing it earlier this year. The Agricultural Bank of China, one of the country’s four state-owned banking giants, released a mobile app supporting the digital currency that was available to users in Suzhou, Chengdu, Xiong’An, and Shenzhen.

As part of the tests, PBoC partnered with seven state-owned companies, including three telecom giants, to test DCEP payments. Restaurant giants like McDonald’s and Starbucks are reportedly also looking to enter the trial. An official launch date has not been released yet.

Featured image by Dan Gold on Unsplash