Coinbase Index Fund Open for US Accredited Crypto Investors

The fund gives US investors exposure to all digital currencies on the GDAX exchange

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As one of the leading digital currency firms in the world, Coinbase made an announcement on 12th June 2018 presenting the Coinbase Index Fund open for crypto investors. Earlier on 6th March 2018, the Coinbase firm situated in San Francisco unveiled the investment fund for the first time.

The Product Lead of Coinbase Asset Management, Reuben Bramanathan emphasized that the company is seeing a high interest from investors after the fund announcement in the early part of 2018;

Coinbase Index Fund gives investors exposure to all assets listed on our exchange, weighted by market capitalization…At this stage, Coinbase Index Fund is only open to US-resident accredited investors. We’re working on launching more funds which are accessible to all investors and cover a broader range of digital assets.

The official website states the vision of the firm is to make index investing in digital assets available to everyone. Coinbase further highlights that the company is “beginning the work required to offer index funds to all US investors”. This means going forward the funds will not just limit to accredited investors, and also added that, “In the future, we hope to be able to offer index investing to customers in the US and internationally”.

Information About the Coinbase Index Fund

The Coinbase Index Fund is structured as a private fund placed to keep track of the fixed supply Coinbase index. This measures the overall performance of digital currencies on GDAX, the Coinbase crypto exchange.

Minimum investment value for the fund is 250,000 USD and the maximum investment value is 20 million USD. Additionally, the investment fund has a 2% annual management fee for its services.

According to the firm, the index gets reconstituted every time new assets are listed on GDAX. One good example is the recent addition of Ethereum Classic (ETC);

The assets are weighted by market capitalization. The index level takes into account the ongoing increases in supply of each asset, not just changes in price.

Currently, the composition of the fund is as Bitcoin 61.47%, Ethereum 27.17%, Bitcoin Cash 8.22% and Litecoin 3.14%. Soon the firm will add Ethereum Classic to the composition, rebalancing the fund.

The firm further explained that in contrast to investment funds which are actively managed, the fund manager of the index fund, “does not actively trade assets, or target a specific allocation for any asset”.

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