Coinbase is one of the most popular and most successful cryptocurrency exchanges in the world. It has been growing over the years and is now arguably one of the leading platforms for purchasing, selling and trading digital currencies online. It has been able to differentiate itself from the competition and has really imposed itself as a reference for investors and in the crypto space in general.
The US giant is now looking to make a move into the big leagues of finance and investments by launching the Coinbase Index Fund. Announced in March 2018, the Coinbase Index Fund has just launched this month. It allows investors to place money and to invest in the Coinbase Index’s performance. The Coinbase Index is defined by the US firm as “a measure of the overall performance of the digital currencies listed on Coinbase’s Exchange, GDAX.”. The listed crypto-assets are Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. The fund composition as of May 1st, 2018 has BTC standing at 58%, Ethereum at 27% and Bitcoin Cash at 10%.
The Coinbase Index Fund will only be accessible for US residents and accredited investors for now. In order to register and start investing, individuals have to go through an application process. The minimum investment in the fund is of $250,000.
Now that one of the leading cryptocurrency exchanges started an initiative like the Coinbase Index Fund, we can assume that others will follow. We have already seen some platforms attempting to extend their activities by listing different types of crypto assets. Coinbase itself has recently announced that it has acquired licenses to be able to list cryptocurrency type securities and act as a broker-dealer under SEC monitoring. Will other exchanges follow? Will other actors in the industry try to catch up on Coinbase’s progress?
TLDR: US cryptocurrency exchange giant has officially launched its Index Fund called the Coinbase Index Fund. It regroups all the assets listed on its professional trading platform GDAX and is open to US residents and accredited investors.