Coinbase to Launch "Dow Jones" of the Cryptocurrency Markets
Coinbase announced they would be launching a cryptocurrency based index fund.
This news was somewhat lost in the shuffle of the wave of negative headlines that came out over the past few days, but it is very significant news in my opinion.
Coinbase said they will be launching this index fund due in part to large institutional type demand.
New money has been coming in but they don't really know which coins to buy.
This new index fund will take the guess work out of it and allow asset managers to have exposure to a non correlated asset class that has also been outperforming as of late.
Some specifics:
The index fund will be market cap weighted.
Meaning, the larger the market cap, the larger the influence on the index it will have, much the same way that the Dow Jones Industrial Average works.
The weighting will be as follows:
Bitcoin - 62%
Ethereum - 27%
Bitcoin Cash - 7%
Litecoin - 4%
As new coins are added the exchange, they will also be added to the Coinbase Weighted Index Fund.
Investors can start signing up for the product now, but it won't be officially launched for a few more months.
Also, the fund will only be available to accredited investors at first, but hopes to be available to all users over time.
More info about the launch can be found here:
http://www.businessinsider.com/coinbase-cryptocurrency-index-fund-2018-3
Other cryptocurrency products also on the way?
Grayscale also announced the addition of 4 new cryptocurrency based funds.
If you recall, Grayscale launched GBTC, a bitcoin investment trust a few years back. Currently it is one of the only "traditional" assets that offers exposure to bitcoin.
The 4 new funds will offer exposure to:
Ether
Ripple
Bitcoin Cash
Litecoin
However, like the other newly launched Grayscale products, these will only be available to accredited investors initially.
Over time, these products will likely also be made available to the retail public much the same way that GBTC is.
More about it can be seen here:
https://www.ccn.com/bitcoin-investment-trust-creator-launches-four-new-crypto-funds/
Stay informed my friends.
Image Sources:
https://www.ccn.com/bitcoin-investment-trust-creator-launches-four-new-crypto-funds/
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I'm glad Ripple is not making it to Coinbase any time soon, and also that it won't be included in that index.
If that happens then man I can see some more interesting and useful things happening in the crypto space in the coming years. It will add so much confidence and faith in the community and investors that it is going to be just awesome.
I’m relying on Coinbase to help drive the market forward as well as provide top notch security. I’m working on storing my crypto offline, but still trying to figure that one out! Lol Thanks for the post!
And yet people still believe that this is just a scam and will fade away soon.
Don't fall for the FUD
@crypto2crypto
Even though people did not really care about this news, (probably due to the fact that they expected something else) I feel like this is actually really neat and will bring a lot of new money into the crypto-market. One of the key points of people not getting into crypto is due to it being very complicated, but this makes it super-easy.
Yes it takes the some of the guess work out for institutional money while also allowing for exposure to the space.
Yeah, changes like these are welcome.
Ugg, the centralized powers love affair with Ripple kinda sickens us.
If you're interested in the CIF, here's more analysis of it...
https://steemit.com/money/@harpooninvestor/let-the-games-begin-the-cif-coinbase-index-fund-is-the-beginning-or-the-end
Im buying as many alt coins as i can afford right now, but coinbase being our flagship success as a means to getting into crypto, they need to really step up their game emmensely. News is one thing, results are another, until they make it up to us for this bcash situation that caused a tonne of this fud in the first place. We need updates, news, up to date roadmaps, the point of decentralization is transparency and teamwork, its a community effort let us help!
It's definitely been a day of filling my crypto bags! Shoutout to Coinbase though, they've been holding it down and will continue to grow and be a reliable place to purchase and store your coins. I'm interested to see what the next coin they might offer. The buzz has been big recently and I'm quite excited to see which of the choices they are going to make. In the meanwhile I'm still loving it at Binance making some sweet trades with all of these dips!
Respect.
"but coinbase being our flagship success as a means to getting into crypto, they need to really step up their game emmensely" - when you understand what separates CB from other companies in terms of B=MAT and ease of use, you know there is zero reason for them to do anything differently.
Not sure if people realize this but CB has no real competitors UX wise.
increase adoption for the asset class. It gets cryptocurrencies much closer to be an investable asset class although only for accredited investors at this point. This will be a great opportunity for volumes to increase as markets in the space still remain inefficient so prices may not always reflect true demand/supply economics. It will also help those bigger investors that are on the sidelines and hesitant given concerns on security and knowledge about the function of digital wallets.
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Much like how the Dow Jones Industrial Average gives a sense of the American economy, this fund tries to reflect major trends in the cryptocurrency market.
Coinbase having a hard time, as the giants are breaking its news and impact on coinbase is negative. Coinbase vision seems high!