Coinbase Cryptocurrency Index Fund Now Open For Investment

June 13, 2018
21 Views

Coinbase has opened up its index fund for accredited US investors, giving them exposure to all cryptocurrencies listed on its exchange GDAX. The company is now working on “launching more funds which are accessible to all investors and cover a broader range of digital assets.”

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Coinbase Index Fund Launched

Coinbase, one of the largest cryptocurrency companies, announced on Tuesday, June 12, that Coinbase Index Fund is now open for investment. The San Francisco-based company first unveiled this fund on March 6.

“We’ve seen overwhelming interest from investors since we announced the fund earlier this year,” Reuben Bramanathan, Product Lead of Coinbase Asset Management, wrote. He elaborated:

Coinbase Index Fund gives investors exposure to all assets listed on our exchange, weighted by market capitalization…At this stage, Coinbase Index Fund is only open to US-resident accredited investors. We’re working on launching more funds which are accessible to all investors and cover a broader range of digital assets.

The company’s website states that “Our vision is to make index investing in digital assets available to everyone.” Further, the company emphasized that they are “beginning the work required to offer index funds to all US investors,” not just accredited ones, adding that “In the future, we hope to be able to offer index investing to customers in the US and internationally.”

About the Fund

Coinbase Index Fund “is a private fund that seeks to track Coinbase Index (Fixed Supply),” which is a measure of the overall performance of the cryptocurrencies listed on Coinbase’s exchange, GDAX, the company describes.

Coinbase Index composition, which will be rebalanced to add ETC.

The minimum investment amount for the fund is $250,000 and the maximum is $20 million. The fund’s annual management fee is 2%.

“The assets are weighted by market capitalization. The index level takes into account the ongoing increases in supply of each asset, not just changes in price,” the company noted, adding that the index is “reconstituted each time that a new asset is listed on GDAX,” such as the recent addition of ETC.

The current composition is 61.47% BTC, 27.17% ETH, 8.22% BCH, and 3.14% LTC. The fund will soon be rebalanced to include ETC.

Moreover, Coinbase explained that “Unlike actively managed investment funds,” the fund manager of its index fund “does not actively trade assets, or target a specific allocation for any asset.”

What do you think of Coinbase Index Fund? Let us know in the comments section below.


Images courtesy of Shutterstock and Coinbase.


Need to calculate your bitcoin holdings? Check our tools section.

The post Coinbase Cryptocurrency Index Fund Now Open For Investment appeared first on Bitcoin News.

You may be interested

Capital One Seeks Blockchain Patent for ‘Collaborative’ Authentication Tool
Crypto News
Crypto News

Capital One Seeks Blockchain Patent for ‘Collaborative’ Authentication Tool

btcethereumadmin - August 17, 2018

U.S. banking giant Capital One is working on using blockchain technology to usher in more convenient and secure user authentication…

3 Charts Suggest Bitcoin Prices Could Be Headed Higher
Bitcoin
5 views
Bitcoin
5 views

3 Charts Suggest Bitcoin Prices Could Be Headed Higher

btcethereumadmin - August 17, 2018

For bitcoin (BTC), the path of least resistance is to the upside, according to technical charts. At press time, the…

JD.com Rolls Out Blockchain Platform With Its First App
Crypto News
1 views
Crypto News
1 views

JD.com Rolls Out Blockchain Platform With Its First App

btcethereumadmin - August 17, 2018

Chinese e-commerce giant JD.com has launched a blockchain-as-a-service platform alongside its first app – one that digitally tracks corporate invoices…

Leave a Comment

Your email address will not be published.