📢 Huobi releases its own Crypto Index: Presenting the Huobi 10 Index 📊
✅ One of the leading Global Digital Asset Exchanges, Huobi Pro has unveiled its very own crypto index fund, called the Huobi 10. The Huobi index is compiled of 10 cryptocurrencies traded on Huobi Pro and contains assets with a high market value and good liquidity. The assets are pegged to USDT. These are necessary measures to portray an accurate picture of the current Huobi Pro market performance compared to the US dollar. The introduction of an index fund can be perceived as a market that is growing and maturing.
Huobi Pro is a global digital asset exchange, just like Huobi Autonomous Digital Asset Exchange (HADAX), both subsidiaries of Huobi Global and based in Singapore. Currently there are more than 100 different digital assets available on the exchanges to trade and they are still expanding with a number of new cryptocurrency listings every week.
✅ The Huobi 10 was launched on the 23rd of May and is composed of 10 digital assets (referred to as CDA). Currently the 10 CDA’s the index fund is comprised of are: Bitcoin (25.96%), Huobi Token (25.57%), EOS (15.57%), Ethereum (12.30%), Bitcoin Cash (5.55%), XRP (4.30%), LTC (3.31%), IOST (3.02%), Ethereum Classic (2.57%) and DASH (1.82%).
The Huobi index is using weighted samples. The index samples were selected
according these steps:
➡️ The daily average turnover of all USDT pairs that are traded on Huobi Pro during the previous quarter.
➡️ The USDT trading pairs categorized in 4 groups: coin, platform, application and utility asset, for the index sample the utility assets are excluded.
➡️ Within each group a ranking list is produced.
➡️ If the number of listed assets of a particular group was less than the intended group ratio, another top ranking asset will be appointed to fill in the vacancy.
The Huobi index baseline is the 23rd of May 2018 and the base points are 1,000 Points. As you can see in the screenshot below the title of this article, the current status of the Huobi index is 933.22 Points. To calculate the crypto index Huobi used the Paasche weighted composite price Index. Click HERE for a description on how the Paasche weighted price index works.
✅ Coming June 2018 Huobi will start launching new financial products, some of which are based on the Huobi Index. Potential financial products that will be added to Huobi’s portfolio might be derivatives or a crypto or Bitcoin ETF (Exchange-traded fund). Derivatives are financial securities of which the value is derived from an underlying asset or group of assets. A crypto ETF or Bitcoin ETF is security that tracks the value of an index or group of assets in the same way a traditional index fund does, but the difference is it’s traded like a digital asset on a digital asset exchange.
📈 The Huobi 10 performed well against Bitcoin. Data has been tested from March till May 2018 and the alpha of Huobi 10 index compared to Bitcoin (BTC) is 0.0028. The beta of the index compared to Bitcoin (BTC) is 0.79.
In the near future Huobi 10 Index performance will be published in leading global financial communication platforms, such as Bloomberg.
✅ As was mentioned by Huobi at Blockchain Festival Vietnam, they are expanding at a rapid pace. With the opening of new offices in San Francisco and London later this year, launching Huobi Token in January 2018 and organizing Blockchain Conferences in different cities all over the world, they are making great progress.
The newest additions to the Huobi Global brand will feature an array of financial products. Starting with the Huobi 10 index, followed by the launch of HB10 (more details will follow).
Last week, Huobi Pro’s daily trading volume exceeded the volume of another established exchange, Binance. This is a sign that Huobi is gaining more-and-more traction. People are noticing.
I will be following the progress of Huobi closely and will follow-up with information on new products as they unfold.
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