In a reassuring sign of the times, Huobi Group has officially launched its first crypto index, the ‘Huobi 10 Index’.
Indices are widely used in the traditional stock market as a means of benchmarking performance of a particular group of assets, typically securities. They act as a fantasy portfolio that represents a section of the market that investors can then compare their own portfolios against.
The ‘Nasdaq’, as it is commonly used, typically refers to the Nasdaq Composite, an index of over 3,000 stocks native to the Nasdaq exchange and is a widely used indicator for overall stock market performance. The S&P 500 is a similar index.
The Huobi 10 Index, as the name implies, will include 10 ‘large scale’ digital assets with high liquidity and market capitalization that have a USDT pair on the Huobi Pro exchange. The collection of assets will then be assigned a points-based score, with a base of 1,000.
The official press release indicates that the Huobi 10 Index would be published through global media entities such as Bloomberg, a nod to the increased legitimacy cryptocurrencies now demand.
Early reports show that the Huobi 10 Index is actually performing quite strongly against to Bitcoin (BTC). The release reads:
According to the historical data from March to May, the alpha of Huobi 10 Index compared to BTC is -0.0028, while the beta of the index based on BTC is 0.79. This proves that Huobi 10 Index is effective in maintaining alpha while suppressing volatility.”
An additional index will be released next month, similarly named HB10. It is understood it will be based on the Huobi 10 Index. No word as to whether associated index or exchange-traded funds (ETFs) are in the works, though, so for now those interested in adjusting their portfolio to Huobi’s selected spread will have to do so manually.
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