OKEx, the crypto-to-crypto trading platform launched by OKCoin, previously one of the major three exchanges in China, has rolled out a cryptocurrency exchange-traded fund.
The new offering, though branded as OK06 Exchange-Traded Tracker (OK06ETT) according to an announcement on Tuesday, effectively represents a basket of crypto assets whose shares can be further traded as a whole to lower transaction costs and to diversify risks.
The company said the ETT will initiatively replicate the performance of six cryptocurrencies that are traded on its platform against the U.S. dollar-pegged tether cryptocurrency. The constituents include bitcoin, ethereum, litecoin, bitcoin cash, EOS and OKB – the platform’s own utility token.
OKEx said tokens have to be among the top 10 percent in terms of a 30-day average trading volume against tether on the platform in order to be eligible for the index. However, OKB becomes one constituent of OK06ETT by default, a company representative said.
The announcement comes just days after OKEx’s rival platform Huobi Pro also launched a cryptocurrency based ETF on Friday, which replicates the market performance of 10 cryptocurrencies on its platform, based on their market cap and liquidity.
Similar to Huobi’s policy, while OK06ETT also opens its crypto portfolio trading to Chinese investors, it applies a restriction rule to exclude users from the U.S. and all its territories.
Notably, the offering prohibits participation from investors in Hong Kong, despite that is where OKEx is currently based following China’s crypto trading ban in 2017.
Currently, unlike its counterpart in the U.S. which does not give green lights to crypto ETFs in the country, market regulators in Hong Kong have not taken a known stance on the issue.
Market index image via Shutterstock
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