OKEx Is Rolling Out a Token-based ETF? All you need to know

OKEx, cryptocurrency trading platform launched by previously one of the top exchanges in China, OKCoin has rolled out one cryptocurrency exchange-traded fund.

According to the announcement made on Tuesday, the new launch is deemed as OK06 Exchange Traded Tracker (OK06ETT). The new launch effectively represents a combo of crypto assets. To lower the transaction costs and diversify risks, they can be traded fully.

OKEx revealed that the ETT will be replicating the performance of six cryptocurrencies that are traded on its platform. U.S. dollar pegged tether (USDT) cryptocurrency including bitcoin, Ethereum, Litecoin, bitcoin cash, EOS, and OKB – the OKEx platform's own utility token is used for trading on its platform.

OKEx said that in order to be indexed on the platform, tokens have to be rated top 10 percent in terms of 30-day average trading volume against tether on the platform. The OKEx representative further added OKB, by default will be an integral token of OK06ETT by default.

Just after Huobi Pro launched cryptocurrency-based ETF on Friday, OKEx made the announcement. Based on the market valuation and liquidity of the digital currencies, the product replicates the market performance of 10 cryptocurrencies.

Both Huobi and OKEx have opened their trading platforms to Chinese investors. Also, they have restricted the users from the U.S. and all its territories.

Hong Kong investors are also prohibited from participation in the new offering. This is based on China’s cryptocurrency trading ban in 2017.

The watchdogs in the U.S. have restricted crypto ETFs in the country, whereas in Hong Kong market regulators have not taken any public position on the issue.

Image via Coinbase

Join our telegram group

Related