H20 on-chain index ETF: A new choice for diversified encryption investment

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On-chain ETF New Trend: Analysis of H20 Index Products

On July 23, several ETF issuers were approved to launch Ethereum spot ETFs, which are expected to begin trading this Tuesday. This move further propels the wave of development for crypto asset ETFs.

However, the current crypto ETF products still have some limitations. The entry threshold is high, handling fees are expensive, the trading process is complex, and investment choices are limited to the two mainstream cryptocurrencies, Bitcoin and Ethereum, which cannot cover a wider range of potential assets.

In this context, some innovative products have emerged, aiming to create a more convenient and accessible on-chain crypto ETF investment environment for ordinary investors. Among them, H20 stands out as the first index-based on-chain ETF product.

Ethereum ETF dust settles, decoding Haya's on-chain ETF index products

H20 consists of 20 selected crypto assets that can be subscribed and redeemed at any time. Users can track the performance of quality tokens in specific on-chain areas with simple operations, achieving diversified investment.

The selection of these 20 constituent tokens follows a strict process, filtering based on factors such as market capitalization and trading volume. The weight limit for a single token is 25%, and rebalancing occurs quarterly. Currently, the constituents include mainstream tokens like BTC, ETH, BNB, and SOL, with Bitcoin and Ethereum each accounting for 25% weight.

Ethereum ETF settled, decoding Haya's on-chain ETF index product

Based on historical backtesting data, H20's overall net value performance is better than simply holding BTC, and it greatly surpasses the S&P index during the same period. Since the benchmark date of May 19, H20 has achieved more than 5% returns in the two months since.

Ethereum ETF settled, decoding Haya's on-chain ETF index product

H20 is deployed on the Arbitrum network, and users can participate using assets like USDT and USDC on this chain. Participation methods include direct minting and purchasing on a DEX. During minting, users input the required amount of H20, and the smart contract automatically calculates the necessary quantities of each component token and executes the exchange.

Ethereum ETF settles, decoding Haya's on-chain ETF index product

In the future, H20 will also become an important part of a larger ecosystem, including serving as collateral for the stablecoin HAI and participating in liquidity mining, among other things. Additionally, more conceptual ETF products targeting different fields are also in the planning.

Ethereum ETF settled, decoding Haya's on-chain ETF index product

Overall, decentralized ETF platforms like H20 provide users with a new option for conveniently configuring diversified asset portfolios on-chain, which is expected to meet the growing investment demands of the crypto market. As products and ecosystems continue to improve, these innovative ETFs may play a significant role in the future landscape of crypto finance.

Ethereum ETF settled, decoding Haya's on-chain ETF index product

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GasFeeThundervip
· 07-21 08:02
The data is not optimized, it’s better to wait for historical lows.
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AlgoAlchemistvip
· 07-20 17:06
Can ETFs be on-chain now? This is really great!
View OriginalReply0
MetaverseMigrantvip
· 07-19 07:04
It's really just a whole basket for the family.
View OriginalReply0
ValidatorVikingvip
· 07-19 06:47
lmao another etf protocol... battle-tested validators know better than this fluff
Reply0
gas_guzzlervip
· 07-19 06:44
Another wave of play people for suckers
View OriginalReply0
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