Coinbase cryptocurrency index fund – Business Insider
A Bitcoin logo is seen on a cryptocurrency ATM te Santa Monica Thomson Reuters
- Coinbase announced Tuesday that it will launch an index fund product.
- The fund will permit accredited investors to invest te a basket of cryptocurrencies listed on GDAX, Coinbase’s exchange.
Coinbase, the cryptocurrency trading podium, announced Tuesday the launch of an index fund which will permit investors to waterput money into a basket of four of the largest cryptocurrencies.
The so-called Coinbase Index Fund will give investors access to the digital currencies listed on GDAX, the exchange operated by Coinbase. It will be weighted by market capitalization and will adjust when fresh coins are added to the exchange.
The breakdown of the fund is spil goes after: 62% bitcoin, 27% ethereum, 7% bitcoin specie, and 4% litecoin. Investors can begin signing up for the product, but it won’t be live for a duo of months, according to a spokesperson for Coinbase.
The index fund wouldn’t be the very first one to klapper the market. Bitwise Asset Management, for example, operates a crypto index fund, holding ten cryptocurrencies weighted by market capitalization.
Coinbase Coinbase product manager Reuben Bramanathan told Business Insider te a phone vraaggesprek that the product reflects the growing request on the part of institutional investors and high-net-worth individuals looking to dive into the market for digital coins, which stands at about $500 billion ter value.
“Wij are witnessing fresh investors coming to the market because they see an asset that is not correlated and outperforms, but they don’t know which ones to buy,” Bramanathan said.
At this point, the product is open to only accredited investors because the company wants to wait on more clarity from the Securities and Exchange Commission on bitcoin-linked financial products, which the SEC pumped the brakes on.
Te a letterteken signed by Dalia Blass, the SEC’s director of the division of investment management, the agency said: “There are a number of significant investor protection issues that need to be examined before sponsors start suggesting thesis funds to investors.”
Bramanathan expects there is strong retail request for an index fund product.
The stir is a slight departure from Coinbase’s main business of facilitating trading ter the cryptocurrency market.
But the company’s común manager Dan Romero told Business Insider’s Becky Peterson that he is attempting to build Coinbase into the Google of cryptocurrency. Spil Peterson pointed out recently, if there is one thing wij know about Google, it is that they are always gate-crashing fresh markets.