OKex releases a cryptocurrency index fund that will allow both retail and corporate investors with around $100 to purchase six coins & tokens.
OKex (2nd largest exchange by volume at time of writing) released their version of an ETF (exchange traded fund) called OK06ETT. This allows users to purchase six coins, as of writing (BTC, ETH, LTC, BCH, EOS, and OKB), using the capitalization-weighted methodology against UDST. This index allows investors to diversify their portfolios, lower fees, and more easily manage risk. OK06ETT is not only designed for corporate investors, as the minimum investment is around $100. The chosen coins for the index can change over time based on the previous 30 days of trading volume, all coins except for OKB (the platforms utility token) must be in the top ten. At any point the investor can trade their ETT for the underlying assets, at a small fee, and this allows the index price to remain close to the actual prices of the underlying assets.
Many investors want exposure to the crypto space but do not know much about the technology behind it. Instead of forcing them to choose one or two coins, diversifying their portfolios allow investors to feel safer with their investments. Many companies have moved towards this route in order to try and spark new interest in the space, most notably Coinbase, Circle Invest, and Grayscale. Whether this attracts retail or corporate investors or not remains to be seen but it is an easy way to gain exposure. Will you be buying any of these products?
Source: Altcoin Buzz News
Original Post: OKex Releases Cryptocurrency Index Fund