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 a�?launching more funds which are accessible to all investors and cover a broader range of digital assets.a�?
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 unveiledA�this fund on March 6.
a�?Wea��ve seen overwhelming interest from investors since we announced the fund earlier this year,a�? Reuben Bramanathan, Product Lead of Coinbase Asset Management, wrote. He elaborated:
Coinbase Index Fund gives investors exposure order diltiazem cream to all assets listed on our exchange, weighted by market capitalizationa��At this stage, Coinbase Index Fund is only open to US-resident accredited investors. Wea��re working on launching more funds which are accessible to all investors and cover a broader range of digital assets.
The companya��s website states that a�?Our vision is to make index investing in digital assets available to everyone.a�? Further, the company emphasized that they are a�?beginning the work required to offer index funds to all US investors,a�? not just accredited ones, adding that a�?In the future, we hope to be able to offer index investing to customers in the US and internationally.a�?
About the Fund
Coinbase Index Fund a�?is a private fund that seeks to track Coinbase Index (Fixed Supply),a�? which is a measure of the overall performance of the cryptocurrencies listed on Coinbasea��s exchange, GDAX, the company describes.
The minimum investment amount for the fund is $250,000 and the maximum is $20 million. The funda��s annual management fee is 2%.
a�?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,a�? the company noted, adding that the index is a�?reconstituted each time that a new asset is listed on GDAX,a�? 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 a�?Unlike actively managed investment funds,a�? the fund manager of its index fund a�?does not actively trade assets, or target a specific allocation for any asset.a�?
What do you think of Coinbase Index Fund? Let us know in the comments section below.
Images courtesy of Shutterstock and Coinbase.
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