OKEx launches index fund of 6 cryptocurrencies

OKEx launches index fund of 6 cryptocurrencies

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The OKEx exchange, founded by OKCoin, once one of the largest operators of the Chinese cryptocurrency market, has launched its own cryptocurrency index fund (ETF), CoinDesk reports.

The new product is based on the OK06 index of the Exchange-Traded Tracker (OK06ETT) and presents a basket of crypto-assets in which investors can invest their funds for risk diversification.

The company said that initially the fund will include 6 cryptocurrencies that are traded on its site in pairs to USDT: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, EOS and OKN – its own utility-token OKEx.

OKEx notes that for inclusion in the basket, the сryptocurrency should be among the 10% of the largest assets in terms of trading volumes paired with Tether in the last 30 days. OKB is included in the OK06ETT index by default, the representative of the company explained.

It is noteworthy that the launch of the OKEx index fund took place a few days after a similar product was presented by the competing Huobi Pro  exchange. Its basket consists of digital assets, selected on the basis of market capitalization and liquidity. At the same time, the Singaporean company called its HB10 fund “the first cryptocurrency ITF in the world”.

By analogy with Huobi’s HB10, minimal investments in OK06ETT are set at $100, which makes them affordable for retail investors.

Like Huobi, OKEx opens its index fund for Chinese traders, but does not accept US residents because of restrictions imposed by local regulators. It is noteworthy that the residents of Hong Kong will not be able to use the tool either, despite the fact that in this jurisdiction OKEx moved after her forced withdrawal from China. Regulators of Hong Kong have not yet indicated their position with respect to cryptocurrency ETFs.

Recall, in May, Huobi enlisted the services of former CEO of OKEx Chris Lee, offering him the post of vice president for global business development.

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