Coinbase Index Fund Goes Live; “Next Step” to Democratize Crypto Index Investing
Coinbase, the leading US cryptocurrency trading platform, has officially opened their Coinbase Index Fund. The announcement came on Tuesday afternoon (PT) via Reuben Bramanathan (Product Lead, Coinbase Asset Management), who wrote on behalf of The Coinbase Blog.
As stated when they launched the Coinbase Asset Management platform in early March, “at this stage,” only US-resident accredited investors will be able to enter into the Coinbase Index Fund.
Also, Coinbase has decided to cap the amount able to be invested into the fund at $US20 million, with the minimum entry point being $250,000.
Reinforcing what was said in the above-mentioned March announcement, Bramanathan disclosed that Coinbase is “working on launching more funds which are accessible to all investors and cover a broader range of digital assets.”
Promisingly, Tuesday saw Bramanathan publish this tweet stating that “building a team” to enable this goal of crypto index investing democratization is indeed the “next step.”
Announcing: Coinbase Index Fund is open for investment. https://t.co/IVzeO4C6BK
— Coinbase (@coinbase) June 12, 2018
Commenting further on what the Coinbase Index Fund will mean for the industry was Brian Armstrong (Co-Founder & CEO, Coinbase), who suggested that:
Investing in Coinbase Index Fund is the easiest way to get exposure to a broad range of crypto assets.”
Armstrong went on to highlight how the fund is much more financially feasible, too; undercutting the exorbitant 2–20 percent fees “charged by most crypto hedge funds.”
The rebalancing of the fund’s composition is a non-factor, the Coinbase CEO added, as “new assets [are] automatically added to the fund as they become available on Coinbase.”
Investing in Coinbase Index Fund is the easiest way to get exposure to a broad range get of crypto assets.
Much cheaper than 2 and 20% charged by most crypto hedge funds, and you get new assets automatically added to the fund as they become available on Coinbase. No rebalancing. https://t.co/TyOnDuFMT9
— Brian Armstrong (@brian_armstrong) June 13, 2018
As revealed yesterday, one such new entrant to the fund will be Ethereum Classic (ETC) – but this is still a matter of months away. Whilst it remains unknown whether ETC will become listed on Coinbase’s self-named trading platform (which is dependent upon factors such as liquidity, price stability etc.), it will form part of the Coinbase Index Fund.
Importantly, whenever any cryptoasset is listed on Coinbase Markets, the Coinbase Index Fund will automatically rebalance so as to accommodate the newly-listed cryptoasset.
Speaking of new listings…
The crypto community went wild with conjecture in late March when Coinbase declared its intention to support ERC20 tokens across its suite of product offerings. About three weeks ago, they acquired Paradex – a decentralized relayer that grants users the ability to trade ERC20 tokens directly (i.e., wallet to wallet).
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