Coinbase opens index fund investment
Coinbase has recently released news via twitter that the exchange has opened an index fund investment with a quota of $250,000 to $20 million. The index fund will include all crypto assets listed on Coinbase.
The Coinbase asset management team had originally announced the set up of an index fund in March. Initially, the community responded positively and believed that the fund would attract a large number of institutions and retail investors.
Reuben Bramanathan of the Coinbase asset management team recently announced that the fund will begin to accept investments ranging from $250,000 to $20 million. The index fund uses market capitalization as its weight and will consist of all currency denominations listed on Coinbase, including the upcoming Ethereum Classic.
Currently, the fund consists of Bitcoin(61.5%), Ethereum(27.2%), Bitcoin Cash(8.2%), and Litecoin(3.1%).
In the future, the currency types will be updated and increased. Coinbase provides insurance for asset losses, so the index fund provides investors with an additional layer of financial protection to reduce potential investment risks. Coinbase has proven itself to be a reliable place to store cryptocurrencies because it hasn't one hacking-related incident during its six years of operation. The Coinbase fund management team will also adjust the portfolio several times a year based on market trends. The index fund investor will be charged 2% of the annual fee.
However, this fund is only open to authorized investors in the United States, and to become a qualified investor, you need to have more than $1 million net asset value and more than $200,000 annual revenue. This prerequisite precludes a large number of investors.
Despite limited investment opportunities, the Coinbase fund management team is investigating how to open similar investment opportunities to a wider audience:
“We are working to launch more funds to cover a wider range of digital assets and allow all investors to participate.”
Author： Nino Zhang
Executive editor： Nino