Coinbase Set To Launch Cryptocurrency Index Fund

Coinbase has announced its plans to establish its first-ever cryptocurrency index fund according to New York (Reuters) marking the firm’s foray into the management of the asset. The U.S. firm is the biggest crypto company in the world and recently valued $1.6 billion. It has created a subsidiary known as Coinbase Asset Management to handle the new Coinbase Asset Management according to Reuben Bramanathan, the product leader!

The fund will create exposure to investors concerning assets rolled on GDAX, institutional exchange, weighted by market capitalization as Bramanathan highlighted. Whenever any new asset is added, it will be included automatically in the fund. Bramanathan insisted that there is a strong demand from customers and market for a passive investment management commodity!

The investment product has been part of the company roadmap for long and due to high demand; Coinbase has now decided to launch the same. However, the index fund will only be accessible to U.S.-resident accredited investors. Hence, Coinbase is operating on launching more cash that is available to investors and that cover a wider range of digital assets!

The new funds will also track the company’s index to be launched, which is a performance benchmark of the entire assets listed. Digital currencies on Coinbase are litecoin, ethereum, bitcoin cash, and bitcoin. Each time a new asset is included, the index will include it automatically. The cryptocurrency explosion has witnessed a plethora of index funds and digital currency hedge funds launched in the market!

As reported by Autonomous NEXT, there are currently 225 crypto funds crosswise seven strategy types, whereby the value of assets in the space is approximated to range between $3.5 billion and $5 billion. The strategies diversification portrays a market that combines software and cryptocurrencies, putting venture investors and hedge fund managers into the same exchange. Most of the funds are actively managed in addition to the huge demand or gap for index funds that ensure investors monitor the performance of the whole asset class instead of trying to get winners!

In 2017, Coinbase posted $1 billion revenue, which was supported by a frenzy of trading and applications even as the cost of cryptocurrencies and bitcoin surged in January and February. Coinbase Index Fund will bring exposure to investors regarding digital assets listed on GDAX, Coinbase’s exchange. Index funds have revolutionized the manner in the majority of people think of investing, and Coinbase is excited to empower its customers to invest in the prospective blockchain-based digital assets!