Coinbase is launching its own cryptocurrency index fund, according to a report published in TechCrunch on March 7, 2018.
Coinbase, the digital currency giant has announced about their expansion by launching its own cryptocurrency index fund. A minimum of US$ 10,000 will be available for the fund and a 2 percent annual management fee excluding performance fee will be charged. This is becoming a norm for crypto-specific passive investment vehicles. From Coinbase’s new management division, Index Fund is the first investment vehicle.
All digital currencies traded on GDAX is included in it. 62 percent Bitcoin, 27 percent Ethereum, 7 percent Bitcoin Cash and 4 percent Litecoin will be included in the Index Fund at the time of launching it. If an investor can meet the minimum investment of US$ 10,000, investments can be made in USD.
Coinbase will hold all the funds in cold storage. Due to the good security offered by them, they have another product called Coinbase Custody. Coinbase is not the first to develop a crypto fund. Similar SEC-sanctioned funds like Bitwise investments’ HOLD 10 index are created by few people. However, the difference is that Coinbase is already an established name in the field of many investors who are already using one of the services of Coinbase.
This launch by Coinbase will increase the growth of Global Cryptocurrency Market, as detailed in the global cryptocurrency market report published by Coherent Market Insights.