Coinbase just announced their index fund
Coinbase recently announced their index fund, the announcement post on their blogpost can be found here.
This is huge news for adoption of cryptocurrencies in general as coinbase is one of the leading exchanges in the U.S.
Investors will be able to buy all listed currencies on the exchange through the fund, which consist of Bitcoin, Ethereum, Bitcoin Cash and Litecoin depending on their market cap. The current allocation is Bitcoin 62%, Ethereum 27%, Bitcoin Cash 7% and Litecoin at 4%. The allocation will reset once every year on January 1st.
At the same time they introduced Coinbase Index as well which is a measure of the financial performance of all assets that are listed on GDAX. Here is a chart of the Coinbase Index:
Bear in mind that there is a $10,000 minimum investment for the index fund and 2% will be charged annually as a management fee but without a performance fee which usually is rare for investment funds.
Investments for the Index fund are only possible for US-based accredited investors.
Coinbase doesn't plan on stopping here with the different currencies that are added to the fund and in the near future it will not only rely on the currencies that their exchange GDAX has listed or will list.
If you want to read more on the criteria of assets to be listed on GDAX you can find that information here.
They also released a Construction and Methodology document on the index which can be found here.
I am personally very excited for this as bigger investors might not be interested in investing in assets one by one and having to make sure to keep them safe in cold storage themselves hence trusting coinbase with it. This could lead to a lot of new players entering the space and it could mean new heights for blockchain technology and evaluation this year.
Of course if you know how to keep your coins safe, they are the safest if only you hold the private keys to them. :)
"I am personally very excited for this as bigger investors might not be interested in investing in assets one by one and having to make sure to keep them safe in cold storage themselves hence trusting Coinbase with it"
This is vital, make it easy for new investors to take a small crypto portfolio. Great news.
This is really great news, would make trading in crypto currencies more comfortable and would bring about more trust into the market. Coin base would be like a goody bag of cryptos there by making it easier for people to trade in it
Thanks for the update @acidyo. As a Coinbase customer, this is vital to me.
However, as I was perusing the net this evening, I came across a report that Coinbase have been dragged to court - lawsuit due to inside trading. Remember the Bitcoin Cash issue? Yes that one.
what's your take on this?
Can't say for sure, I remember there being some rumors about an API of BCH leaking before the announcement which could've been a reason to the pump but who knows... Gotta be hard to trust your co-workers not to gamble on currencies when there's a lot of ways for them to privately without trace contact outsiders to tip them off.
And my bubble has burst... it’s looking like your going to have to be a credited investor to buy into the fund
Oh, thanks will add that to the post.
Sad day! I need to work on that net worth.
Ahhhhhhhh, drats. Great find Mike!
Big news... Good or bad???
This is great news. I love that they are planning to include more coins than just those they list on their exchange, though makes sense to start with those.
Thanks for the methodology doc. The GDAX framework one I already had and actually did a video applying it to STEEM and another coin a couple weeks back. Now I want to go through the index doc and apply that to a few possible coins.
Having $10,000 isn't enough. It's sad that I can't even partake.. OOh, yay. Rich people only.
Iconomi has much better index's. I have invested in BLX. It is great to have exposure to a vast array of crypto currency without having to maintain a billion wallets.
Coinbase current index is nowhere near comparison.
A credited investor...bah humbug, just take the percentages they listed and copy it.
Good news for crypto adoption. Folks might be more comfortably buying an index fund by coinbase than actual crypto.
Thank for the news @acidyo, good to hear something positive on adoption in the time when bitcoin volume and adoption seem to be declining...