Coinbase is Launching a Weighted Index Fund!

in #cryptocurrency3 years ago

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Coinbase is launching a weighted index fund similar to the Dow Jones Industrial Average (30 companies) and the S&P 500 (500 companies).

"It's a very simple to use, easy way to get exposure to the crypto-assets that we offer on our exchange," Coinbase President and COO Asiff Hirji told CNBC's "Fast Money" Tuesday.

If you buy a share of the Dow Jones Industrial Average, your share will increase based on the average momentum of the 30 companies that it's made of.

For example, let's say that coinbase's index fund is made of 30 of the largest cryptocurrencies like bitcoin, ripple, cardano, stellar, tron etc.

This index would allow you to invest in all of them equally and at the same time.

So if 10 of the companies are doing poorly and 20 are doing well, you're still going to make profits from the index.

It would be very wise to invest in this.

Source: https://www.cnbc.com/2018/03/06/bitcoin-exchange-coinbase-launches-the-dow-jones-of-cryptocurrencies.html

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Its kind of sketchy though considering if you straight up hold the coins in your own private key secure wallet when the technology curve breaks you're going to make way more money. Like yeah for alot of people this is a secure way to do that but coinbase is still a 3rd party making millions off of misinformation and fear. It will be good for ths pre-millenial era users but once they become memories coinbase wont be able to function as a service anymore so be hesitant about its value as a company over time. This is supposed to be a p2p currency revolution. We need to make sure it stays that way long term. In reality I see this being a real big play and if successful could boost the cryptoeconomy and fuel new companies to try and adapt that strategy. So big win thanks for the share!