About Coinbase crypto index for US investors and other weighted baskets and their appreciation of price

Good morning traders! Time to get ready for another week, so let's get on with it.

Coinbase is launching an index fund! Many of you are new to trading and are not familiar with an index - it's a weighted basket of instruments, which one can trade easily. In this case, the index will consist of all the cryptocurrencies represented on Coinbase.

_{Via Proactive Investors}

Why an index fund? It will show longer-term investors the value and direction of an entire asset class, rather than focusing simply on Bitcoin, possibly providing a little more stability to the price. Where on lags, the other might be a leader; where the others rally, a few laggards might hold the index back. And after all, stability is what major investors are looking for.

The index is not yet available for trading, yet it already exists, according to the website of the soon-to-open-for-trading index here https://am.coinbase.com/index

The index is promised to launch for trading some time in 2018. On the same page you can apply for the early access list, by registering your e-mail. Unfortunately, this opportunity is only open for US residents and accredited investors, for now

Hopefully it won't be too far away, when other exchanges start offering weighed baskets and some kind of standards emerge. Let's take a look at some major US Indices, the Dow Jones, for example.

Above you can see the weekly chart of the Dow Jones Industrial Average (DJIA), which is the price weighted average of 30 large and significant public companies, that is traded on the NYSE (New York Stock Exchange). And you don't have to look closely to see how much it has appreciated over time. It can be argued that the markets appreciate due to the endless QE (Quantitative Easing) from the FED (The Federal Reserve), but i say, there is something about weighted baskets and wide-spread adoption.

VirtueofSelfishInvesting.com brings us this 100+ year chart of the Dow Jones Industrial Average (pictured below):

_{VirtueofSelfishInvesting.com via MarketWatch}

According to Chris Kacher, who published the chart initially, markets always rise in the longer term, just because “intelligence, creativity, and innovation always trump fear”. Unless you're an excellent short-term speculator, you're probably sticking to the buy side. Let's finish this post with an ageless quote from Ziad K. Abdelnour

_{Via quotefancy}

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_{Title image from pixabay}

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