Coinbase.com Rolls Out a Weighted Index Fund for Bitcoin Cryptocurrencies
It is evident that most financial investors play incredibly close attention to the Dow Jones Industrial Average index when it comes to investing in stocks. Taking a page from Wall Street, Coinbase.com recently announced that it is launching a weighted index fund for the emerging market of cryptocurrencies led by Bitcoin.
When Will Coinbase.com Roll Out THe Weighted Index Fund for Bitcoin Cryptocurrency?
In a recent article posted on CNBC.com by Kate Rooney, Coinbase is looking to use this fund as means to reflect the major trends that are having an impact on the cryptocurrency market. Coinbase President and COO Asiff Hirji was quoted as saying, “It’s an easy way to get exposure to the crypto assets that we offer on our exchange” in a recent dialogue with CNBC’s Fast Money on Tuesday.
The Coinbase Index Fund Welcomes Accredited United States investors
As stated in the article, ‘the Coinbase Index Fund will give accredited United States investors exposure to all assets listed on the company’s current exchange, GDAX. The currencies will be weighted based on market capitalization’. This index fund is designed to be similar to the Dow Jones Industrial Average. The Dow Jones uses a grouping of 30 stocks as a window to the state of the American economy. The Coinbase Index Fund will use a gathering of the top cryptocurrencies to reflect what is going on in this emerging market.
Buy, Sell And Trade Bitcoin, Bitcoin Cash, Litecoin and Ethereum
Coinbase has established itself as the leader in the US marketplace for the purchase and exchange for every major cryptocurrency. The GDAX exchange is designed for professional traders. A few of the top cryptos represented are Bitcoin, Bitcoin Cash, Litecoin and Ethereum. Other cryptos that will not be in the exchange include Ripple and XRP.
Coinbase Remains Cautious About New Digital Currencies To Its Portfolio
Hirji went on to tell CNBC that Coinbase remains cautious when it comes to adding new currencies to its portfolio. He noted that there is “rubbish out there” that they are trying to avoid. He went on to say, “There has been a lot of discomfort from the SEC around a lot of these ICO-based tokens. We’re not going to be the ones operating in the black.” He also mentioned that only legal US residents are allowed to invest at this time due to the oversight from the SEC.
Grayscale Investments Rolled Out 4 New Funds Tuesday
Coinbase is not the only cryptocurrency company offering investment products to investors. Grayscale Investments rolled out four new funds on Tuesday involving crypto investment products. Each fund will hold positions in a single cryptocurrency. Like Coinbase, these funds will only be offered to accredited investors. The minimum investment will be $10,000, and there is a vesting period of one year.
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Cryptocurrency Bears Are Watching The Coinbase.com Index Fund
When asked about the Grayscale offering, Hirji noted that his company’s index fund gears towards individual investors as opposed to institutional investors. The Coinbase Index Fund is designed to give investors broader exposure to cryptos. He added, “I think investors are not going to want to pick specific winners or losers.” The whole investment aspect of cryptocurrencies bears watching in the coming months as these types of product continue to gain broader appeal across the entire marketplace.
Coinbase has high hopes for 2019 and 2020 as 2018 has not been a great year for cryptocurrencies. The first half of 2018 was decent however Coinbase saw their biggest growth in 2017 when the price of Bitcoin hit nineteen thousand dollars per coin. Despite the volatility in crypto prices, Coinbase has added Ethereum Classic to their regular Coinbase platform. Also, they upgraded GDAX and made it Coinbase Pro, which is much easier to use based on the fact is it part of the same domain.
While there are plenty of other digital asset exchanges like Binance, Mt Gox, and Kraken, Coinbase is the largest United States-based cryptocurrency exchange. In March 2017, Coinbase launches their Coinbase Index Fund, which trades on the stock market and is different than the “Coinbase Bundle”.
Many mainstream investors want to take advantage of this cryptocurrency Exchange Traded Fund (ETF). However, according to an article on Etftrends.com, people can only participate in they have a net worth higher than one million dollars and an annual income of two hundred thousand dollars. Also, the minimum investment is ten thousand dollars and the ETF is said to have a two percent annual management fee.
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