Cryptocurrency Exchange OKEx launches Cryptocurency exchange-traded fund, offering the OK06 Exchange-Traded Tracker (OK06ETT). ETT will duplicate the performance of six cryptocurrencies that are traded on its platform against the USD-pegged tether cryptocurrency.
5 June, AtoZ Markets – One of the cryptocurrency exchanges, OKEx, has announced the launch of its cryptocurrency exchange-traded fund.
Crypto Exchange OKEx Launches Cryptocurency exchange-traded fund
The offering is representing a basket of crypto assets, which shares can be further traded as a whole to reduce transaction costs and to mitigate risks. The OKEx exchange-traded fund is branded as OK06 Exchange-Traded Tracker (OK06ETT) according to an official announcement from the company on Tuesday.
The company has also added that the ETT will basically duplicate the performance of six cryptocurrencies that are traded on its platform against the USD-pegged tether cryptocurrency. The six cryptocurrencies include bitcoin, ethereum, litecoin, bitcoin cash, EOS, and OKB. The latter is the platform’s own utility token.
OKEx has stated that tokens need to be among the top 10 percent in regards to the 30-day average trading volume against tether on the platform in order to get eligible for the index. Yet, OKB will be eligible for OK06ETT automatically, according to the company representative.
This announcement appears just some days after OKEx’s main competitor Huobi Pro has introduced a cryptocurrency based exchange-traded fund on Friday. The Huobi ETF replicates the market performance of 10 cryptocurrencies on its platform. The ETF is based on the cryptocurrencies’ market cap and liquidity.
Huobi has adopted a strict policy that allows its crypto offering to Chinese investors, but limits the ETF offering to the users from the US. A similar approach has been taken by OK06ETT’s OKEx.
Noteworthy, the OKEx’s offering excludes the users from Hong Kong, in spite of the fact that the crypto exchange’s headquarters are located there. As of the moment, Hong Kong regulators have not rolled out any clear regulations in regards to the crypto ETFs in the country.
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