Cryptocurrency exchange, Coinbase, has announced the launch of its cryptocurrency index fund, effective today and available to US investors. The fund will track all of the coins available on the platform. Coinbase has also said that as new coins are added to their platform, they will automatically be incorporated into the existing fund without any need for rebalancing. They have also said that, while the fund is only currently available to accredited US investors, they are looking for ways to bring similar products to other investors and to people in other countries around the world.
Coinbase recently launched a product called Coinbase Custody. The service, which is aimed at professional investors, offers cold storage of Bitcoin and other cryptocurrencies. It is currently only available to those with an investment of more than $10m and has a $10,000 setup cost, but is one of a host of services that Coinbase is using to try and lure institutional investors to their service.
A Lure For Big Investors
The new fund is another tool to lure big investors, but it isn’t the first passive crypto-based fund. Bitwise offers the Hold10 index, which passively holds the top 10 cryptocurrencies, which are stored in cold storage until the fund rebalances every month. Iconomi offers a fund platform that enables its users to choose and weight their investments.
Coinbase says that its index fund is different, because it has much lower fees. It charges a 2% annual management fee and, of course, it benefits from Coinbase’s now heavily respected cold storage facilities.
The exchange is one of few that offers fiat to crypto pairings, and recently added Ethereum Classic to its fairly limited schedule of crypto funds. The company is making strides towards becoming an SEC-recognized index; a journey which is likely to take some time. They could also be the organisation responsible for bringing in the institutional money that a lot of investors have been waiting for.