Cryptocurrency company OKEx this week announced the launch of a new product, OK06ETT, which will allow investors to invest in a package of six cryptocurrencies through a fund whose shares can be purchased on the exchange for other crypto assets.
OK06ETT's portfolio will initially include bitcoin (BTC), ethereum (ETH), bitcoin cash (BCH), EOS, and OKB, a protocol token developed by OKEx. As a redemption for shares, the fund will accept USDT, a dollar-backed token of Tether. Investors will also be able to redeem shares using the underlying assets, preventing the share price from diverging significantly from the net asset value (NAV). When repurchasing shares at the expense of USDT or at the expense of underlying assets, a commission of 0.2 percent will be charged.
Recently, the development of a suspiciously similar product announced the Asian exchange Huobi, declaring that it is “the first cryptocurrency ETF (a foreign exchange-traded investment fund whose securities are traded on an exchange).” Huobi also hired Chris Li, a former chief executive of OKEx.
Like the Huobi exchange product, OK06ETT will be available to investors admitted to trading on the OKEx platform, and the minimum investment amount will be $100.
Other cryptocurrency exchange-traded funds, including Coinbase and Grayscale Investments exchange-traded funds, work only with accredited investors. The minimum investment requirement for these funds is $50,000 for Grayscale and $250,000 for Coinbase, which can be held in a tax-optimized account.
These funds can be traded on over-the-counter brokerage platforms, where their shares can be purchased by retail investors.
The development of the market for such products suggests that investing in the cryptocurrency space is moving to a new level and moving away from speculation on individual cryptocurrency assets.
According to CCN, cryptocurrency brokerage firm CircleInvest recently introduced a “Buy the Market” service that allows users to buy the best positions in each asset traded on the platform. With the development of this area, other companies will begin to offer such services.
According to ccn
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