On-chain Encryption ETF New Wave: H20 Leads Market Innovation

On July 23, the U.S. Securities and Exchange Commission ( SEC ) officially approved the listing applications for several ETF issuers' Ethereum spot ETFs. This move is expected to initiate preliminary trading the following evening in Beijing time, bringing new vitality to the encryption market.

However, traditional encryption ETFs, while opening a door for investors, still face issues such as high entry barriers, expensive fees, and complex trading processes. More importantly, the current ETF options are limited to Bitcoin and Ethereum, failing to meet investors' demand for a broader allocation of encryption assets.

In this context, the innovative product H20 launched by Haya has emerged. As the first index on-chain ETF product, H20 consists of 20 selected encryption assets, aiming to provide a more user-friendly, convenient, and low-threshold on-chain encryption ETF investment environment for ordinary investors.

The encryption ETF market is booming

An ETF, as a type of open-end fund that can be freely traded on a stock exchange, allows investors to allocate their portfolios based on an understanding of overall industry or market trends without needing to delve deeply into specific assets. This "fuzzy correctness" strategy gives investors the opportunity to achieve returns close to overall market growth.

Data shows that as of July 22, the total net asset value of 11 Bitcoin ETFs in the United States has exceeded $60 billion, with a net asset ratio of 4.61%, and a cumulative net inflow of over $17 billion. At the same time, the total scale of 6 virtual asset spot ETFs in Hong Kong has also surpassed $350 million. These figures fully reflect the market's enthusiasm for encryption assets.

H20: An Innovative On-Chain ETF

H20 is the first index on-chain ETF product launched by Haya, consisting of 20 encryption assets. Its selection follows a strict screening process, including factors such as circulating market capitalization and trading volume, and is rebalanced quarterly to ensure its representativeness and timeliness.

Currently, the 20 component tokens of H20 include mainstream encryption assets such as BTC, ETH, BNB, and SOL, with Bitcoin and Ethereum each accounting for 25% of the weight. From historical backtesting data, the overall performance of H20 surpasses the returns of holding only BTC and far exceeds the S&P 500 index of the US stock market during the same period.

Investment Participation Methods for H20

Investors can participate in H20 in two ways:

1. Minting: Users can directly convert a basket of tokens into corresponding ETF shares through a smart contract.

2. Purchase: Users can directly buy minted ETF shares on the DEX.

Both methods do not require additional fees, providing users with flexible investment options.

Future Development

Haya plans to launch more encryption conceptual ETFs targeting different fields in the future. They have cooperated with Singapore ETF service provider Enlighten Tech and are advancing compliance ETF product applications in multiple global markets.

In addition, H20 will become an important part of the Haya ecosystem, participating in various functions such as the issuance of the stablecoin HAI and liquidity mining.

Conclusion

As the encryption market continues to evolve, innovative products like H20 provide investors with a more flexible and convenient on-chain asset allocation method. This not only lowers the participation threshold for ordinary investors but also brings new vitality and possibilities to the encryption market. In the future, we have reason to expect more similar innovative products to emerge, further promoting the development and popularization of encryption finance.