Crypto trading giant OKEx has in fact wound up being the existing market giant to launch a cryptocurrency index fund.
Stated today and debuting on Tuesday, the product– called OKAY06 ETT– will allow investors to buy a basket of 6 cryptocurrencies through a problem-free fund, shares which will trade on the exchange versus other cryptoassets.
At launch, OKAY06 ETT will include bitcoin (BTC), ethereum (ETH), bitcoin cash (BCH), EOS, as OKB– an energy token established by OKEx. The fund will trade versus USDT, a dollar-pegged token supplied by cryptocurrency start-up Tether.
Investors can similarly redeem the fund for the underlying ownerships, which prevents its share expense from diverging too far from the fund’s net home worth (NAV). Redemption for either USDT or the underlying will sustain a 0.2 percent charge.
The release of this cryptocurrency index fund comes merely days after fellow Asia-based exchange Huobi exposed an incredibly comparable item, which it described as the world’s “initial cryptocurrency ETF.” Huobi, by the method, simply recently poached previous OKEx CEO Chris Lee merely days after his resignation.
Like Huobi’s ETF, OKAY06 ETT will be open to retail investors certified to trade on OKEx, and the minimum monetary investment will be set at around $100
Other cryptocurrency index funds, including ones simply recently presented by Coinbase and Grayscale Investments, limitation contributions to licensed investors. These funds require huge minimum monetary investments– $50,000 for Grayscale’s and $250,000 for Coinbase’s– nevertheless they can be kept in tax-advantaged accounts. Eventually, these conventionally-structured funds may be kept in mind on non-prescription (OTC) brokerage platforms, which would allow retail investors to obtain shares, though these shares would more than most likely trade at a high premium to their NAV.
In any case, the advancement of this product particular niche recommends a shift in the cryptocurrency investing landscape to banking on the environment writ-large and far from assuming on personal cryptoassets.