Cryptocurrency exchange Huobi Pro is launching a new market index for its customers, the company announced Wednesday.
The Huobi main force index will track 10 different digital assets traded against tether (USDT), a dollar-pegged cryptocurrency, on its platform in real time, according to a press release.
The index will "reflect the overall performance of Huobi Pro market," allowing investors to see a single aggregated feed rather than having to check on individual assets one at a time.
The index will use weighted samples, according to the press release, which explained that the index divides digital assets into four categories: digital asset, platform, application and real asset substitute (not included in the index).
The release adds:
"Assets will be ranked according to their turnover, and top assets of each category will be selected as index samples. After samples are selected, the sample weight will be calculated based on the daily average trading volume of the previous quarter."
The exchange further plans to launch index-based products with its main force index as the tracking target at Huobi Pro by June 10.
Huobi also has a contingency in place in case an asset is delisted, so "when an unexpected delisting of the index component occurs, the sample is temporarily replaced. And the coins that are ranked first in the candidate list will be selected as the sample coins in turn."
Market index image via Shutterstock