Digital Asset exchange Huobi has launched the Huobi 10 Index, also known as HB10, in preparation for the June release of additional financial products.

People who have been recently trading cryptocurrencies have probably heard the name of Huobi as it is currently one of the leading exchanges according to global daily volumes. Now Huobi Group is following up with a new investment possibility that will focus on the most liquid assets found on the platform. The Huobi 10 Index will be based on the Huobi Main Force Index, which is specially designed to track the 10 most traded cryptocurrencies against Tether (USDT), a US dollar pegged stablecoin, in real time.

By now you can probably see that Huobi is aiming to build a complete trading ecosystem via their platform for both professional and novice traders. While also providing great additional liquidity to the top assets, the Huobi 10 Index is also bridging the gap between traditional and crypto markets with offering a more stable investment opportunity compared to the highly speculative ‘gem hunting’ approach that often may cause the downfall of the lesser experienced traders.

Indexes have been in use since ages, specially in legacy markets like to stock market. When talking about market performances, people usually refer to indexes, such as the Dow Jones Industrial Average or the Standard & Poor’s 500. Even though the idea of a bitcoin index or a crypto index has been not entirely new either, this is probably the first one that grasps the main idea behind it as with others we felt that they might be lacking the proper variety of cryptocurrencies and also the volume behind them. Another very important aspect of Indexes are the possibility for a Bitcoin ETF or a Crypto ETF to easily invest and diversify through trusted exchanges. The push to legalize Bitcoin ETFs has been stronger than ever.

Optimal Performance

The Huobi Main Force Index achieved more than good results against BTC. The Alpha, which lasted from March to May, resulted in -0.0028 towards BTC, while the Beta of the index is 0.79. This proves that the product is more than suited for business.

Top assets

The sample space contains all listed coins that are traded against USDT at Huobi Pro and calculations are based on the following method according to the Huobi Pro website:

“On this basis, Huobi 10 Index is calculated by the formula of Pasche weighted composite price index, with the average daily trading volume of the previous quarter taken as a core index of sample selection.”

There is a document available for the Huobi 10 Index that explains the principles behind it:

https://www.huobi.pro/word/Huobi10.pdf

Check out the Huobi Index site for more information:

https://www.huobi.pro/huobi_index/

Sign up for Huobi Pro: https://www.huobi.pro/register/