Huobi affiliate has officially launched four digital currency funds for institutional investors.
Huobi Asset Management is a subsidiary of Huobi Technology and has raised an amount of $50 million for four different crypto funds. Two of the most important funds will serve for investing in bitcoin and ether. One includes a private equity fund that will invest in the mining industry and mining-related businesses. The last one will act as an actively managed crypto fund that will invest in several digital currencies.
The bitcoin and ether funds are tracker ones. Basically, they are conceived to reflect how these cryptocurrencies are performing. The four funds are available just for professional or licensed investors like family offices, corporates, or asset managers.
But what are tracker funds? Have you heard about them before?
Tracker funds, also known as index funds, try to reproduce the market index’s conduct. In the beginning, they were launched to give investors an inexpensive investment mechanism allowing them to have access to numerous securities. This is a form of passive investing.
Do you know what is the difference between ETFs and tracker funds?
Even though they are both used for passive investing, ETFs are traded in the form of shares on a stock exchange. These shares are priced multiple times during the day. Tracker funds are arranged as a unit trust or open-ended investment companies and priced just once a day.
Another difference between them is their fee. Dealing charges are higher for ETFs investments than tracker funds ones. This is a major reason why ETFs are not as popular lately, especially in countries like the UK.
About Huobi Asset Management
Huobi Asset Management Limited is a subsidiary of Huobi Technology Holdings Limited. Huobi AM is a company headquartered in Hong Kong, licensed to conduct advising on securities and Asset Management regulated activities. Even though Huobi AM and Huobi Tech operate via common management, they function as two separate entities.