Coinbase, the most widely used cryptocurrency exchange in the world, has announced that they are entering the asset management arena with the Coinbase Index Fund – a new weighted index fund for cryptocurrencies. The Coinbase Index Fund will be available to accredited US investors only, allowing its customers access to all of the cryptocurrencies currently available via its exchange: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
On CNBC’s Fast Money, Coinbase President and COO Asiff Hirji made the announcement, calling the Coinbase Index Fund a “simple to use, easy way to get exposure to the crypto-assets that we offer on our exchange.”
The announcement was followed by a blog post on Medium by Coinbase product manager Reuben Bramanathan, where he elaborated on the announcement:
“Index funds have changed the way that many people think about investing. By providing diversified exposure to a broad range of assets, index funds enable investors to track the performance of an entire asset class, rather than having to select individual assets. We’re excited to give our customers the ability to invest in the potential of blockchain-based digital assets as a whole.”
To ensure compliance with SEC guidelines, Coinbase Index Fund is only being offered to accredited investors who earn more than $200,000 annually, or have a net worth of $1,000,000 or more. The Coinbase Index Fund also requires a minimum investment of $10,000. The fund will charge a flat 2% annual fee.
Coinbase says the Index Fund only includes the four cryptocurrencies they have currently listed on their exchange, but should they list new assets, these too would become included in the Index Fund, which weights each cryptocurrency by market cap.
In recent months, Coinbase has been the center of much controversy, with two class-action lawsuits, accusations of insider trading, and dozens of users reporting missing funds. Still, the company reported over $1 billion in revenue for 2017 and seeks to keep up their momentum by offering new products such as this new Coinbase Index Fund.
The Coinbase Index Fund will open for investing in 2018, and you can sign up for a waitlist on their website.