Hong Kong-based crypto exchange OKEx announced Monday the launch of its first crypto index fund, OK06ETT. This new exchange-traded fund (ETF) will track the OK06 Index, which includes Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), EOS (EOS), and OKEx’s own token OKB.

Limited to 2 million units only. Subscription opens at 11:00 on June 5 (Hong Kong time, UTC+8). Read more: https://t.co/K4NjyrfkPG pic.twitter.com/T0mAbbodqW — OKEx (@OKEx) June 4, 2018

According to the announcement, OKEx designed the new ETF for long-term investors by providing automated diversification and passive trading management.

“To bring satisfactory return to traders in long-term and also to satisfy traders’ needs of diversifying their portfolio, this portfolio tracks OK06ETT index as the benchmark because of its comprehensive and representable features. A fully-replicated passive trading managing method is adopted to minimize the error.”

The fund will trade against USDT, a dollar-pegged token issued by cryptocurrency startup Tether and will leverage a simple market cap weighting strategy. OKEx is currently selling 2 million units for the initial subscription, with a minimum purchase of 100 units.

This news comes just days after Huobi, the third largest cryptocurrency exchange by trading volume, announced that it has launched its first exchange-traded fund (ETF), HB10, a trading vehicle that tracks the HUOBI 10 Index.

The HB10 Index is calculated using a Pasche weighted composite price index formula, with the average daily trading volume of the previous quarter taken as a core index of sample selection. The index includes most of the top market cap-weighted cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), EOS (EOS), Ripple (XRP), as well as Huobi’s own token (HT). Similar to OK06ETT, all listed coins in the HB10 are bought and sold using Tether (USDT).

The launch of these ETFs, and others like them, will likely push regulators to provide clearer direction on the future of these digital investment vehicles.

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