Coinbase Launches Cryptocurrency Index Fund, and Yes, You Can Invest with Bitcoin

Coinbase Launches Cryptocurrency Index Fund, and Yes, You Can Invest with Bitcoin

Cryptocurrency brokerage platform and exchange operator Coinbase is launching a cryptocurrency index fund, and yes, you can invest with Bitcoin.

Coinbase to Launch Cryptocurrency Index Fund

Coinbase President and COO Asiff Hirji announced the new product on Tuesday during an appearance on CNBC’s “Fast Money.”

Hirji said that the Coinbase Index Fund — which will initially only be available to accredited investors — will hold market cap-weighted positions in the four cryptocurrencies currently listed on GDAX, the company’s order-book exchange — as well as any cryptoassets that are added to the platform in the future.

This means that, when it opens, Coinbase’s cryptocurrency index fund will hold positions in Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

Digital Large Cap Fund, which holds weighted positions in the five largest cryptocurrencies by market cap. However, there are several subtle differences.
Source: Coinbase

At present, the two funds bear slightly varying compositions. Grayscale’s fund includes Ripple’s XRP token, which is not currently listed on GDAX. Coinbase has also said that it plans to expand its list of supported cryptoassets significantly in the future, meaning that its fund will likely provide investors with exposure to a greater range of assets than Grayscale’s fund — at least down the road.

Moreover, Coinbase allows investors to purchase shares using any cryptocurrency listed on GDAX, while Grayscale investments are limited to fiat. This could prove to be an attractive option for current cryptocurrency investors.

Finally,  Coinbase’s fund — which has a two percent annual management fee — is cheaper than Grayscale’s, which charges three percent per annum.

Featured image from Shutterstock.

07.03.2018 / 07:05 131
Crypto Exchange Coinbase Launches Four-Coin Index Fund, Only For Accredited Investors Crypto Exchange Coinbase Launches
Crypto exchange and wallet Coinbase is starting its own four-coin index fund, open to all U.S. residents that are also accredited investors. Crypto
Coinbase Launches Index Fund for Digital Currencies Coinbase Launches Index Fund for
Cryptocurrency exchange Coinbase has announced that it is launching an index fund for digital currencies. In a blog announcement, the San
Can Coinbase Index Funds Lead to Faster Cryptocurrency Adoption? Can Coinbase Index Funds Lead to Faster
Index Funds have always been pretty popular in the financial sector. They offer a lot of advantages, especially for unaccredited investors. Coinbase,
Coinbase to Launch its First Crypto Index Fund Coinbase to Launch its First Crypto
Popular US cryptocurrency exchange Coinbase announced today the launch of its first ever index fund. Global Digital Asset Exchange (GDAX), which is
Bitcoin Investment Trust Creator Launches Four New Crypto Funds Bitcoin Investment Trust Creator
Grayscale Investments, the company behind the Bitcoin Investment Trust (OTC: GBTC), announced Tuesday that it had opened four new investment products
Ripple’s XRP Token Takes a Hit as Coinbase Denies New Asset Rumours Ripple’s XRP Token Takes a Hit as
The price of Ripple’s token has fallen by more than 10 percent in a 24-hour period following the announcement from crypto exchange Coinbase that it
Comments (0)
Add a comment
Comment on