Popular crypto exchange platform, Huobi, has announced the introduction of a new feature, Exchange Traded Fund (ETF) for its users.
Under a new investment tool called HB10 by the firm, retail investors can exchange either, Bitcoin, Ethereum, Tether, and HT for HB10 which will constitute ten mainstream digital assets.
The new offering will mirror the characteristics of newly launched Huobi main which track ten different assets on the Huobi Pro exchange in real time, based on their market capitalization and liquidity.
The primary goal for HB10 according to the announcement would be to promote ‘exchange and circulation of digital assets at low risks,’ giving the highly volatile nature of crypto tokens.
Further, subscribed users can “have the opportunity to exchange tokens for a basket of corresponding digital assets so that they can invest in a non-systematic risk diversification digital asset portfolio with fewer virtual currencies.”
Following the launch, traders can only convert crypto tokens, not fiat, to HB10.
It is largely expected that fiat-HB10 transactions would be made available in the near future to increase adoption of the new service.
Low exchange fees that rise almost insignificantly, depending on trading values, as well as, a real-time swap in and out features are strong points of the new investment tool.
The service is for the meantime reportedly available to only China-based users on the exchange. US residents would have to wait a little longer, given regulatory uncertainty over cryptocurrency-related ETFs in the country.
The ETF is a popular trading model across Stock Exchanges around the world but is currently gaining traction in the crypto space. Coinbase and Proshares are other exchanges working on integrating ETF on their platforms.
Since coming into the crypto digital asset industry, Huobi has remained dedicated to incorporating latest crypto trading features on their platform.
The exchange currently ranks as the third biggest exchange by market value, just behind Binance and OKEx according to CoinMarketCap with a $1.25B transaction volume in the last 24 hours.
Whether the introduction of HB10 will massively raise trading volumes on the platform in the coming months is a question only time can answer.
