Traditional investors are used to having multiple streams of investments (some more volatile and some less). With cryptocurrency, that has been difficult for some time.
Bitwise is a cryptocurrency index fund that we have followed and liked since its inception.
But, in breaking news, Coinbase has just released a Coinbase Index Fund.
The Coinbase Index Fund
While Vanguard has the market for index funds when it comes to traditional investors, it seems Coinbase is making a play at the cryptocurrency index fund market.
In a statement released from Coinbase’s public blog by Reuben Bramanathan, Coinbase announced their index fund.
More specifically, the statement said:
Coinbase Index Fund will give investors exposure to all digital assets listed on Coinbase’s exchange, GDAX, weighted by market capitalization. If a new asset is listed on the exchange, it will be automatically added to the fund.
Index funds have changed the way that many people think about investing. By providing diversified exposure to a broad range of assets, index funds enable investors to track the performance of an entire asset class, rather than having to select individual assets. We’re excited to give our customers the ability to invest in the potential of blockchain-based digital assets as a whole.
At this stage, investing in Coinbase Index Fund will only be available to US-resident, accredited investors. We’re working on launching more funds which are available to all investors and cover a broader range of digital assets. (1)
They also announced the Coinbase Index which will measure the performance of all financial assets on GDAX.
This may seem like another feature in a company that has been facing lawsuits and filings against them, but this is major news for the market.
It is a way to onboard new investors, still hesitant to try cryptocurrencies.
The set-up of an easily accessible Coinbase index fund should prove very valuable to those wanting to play it safe, but still, take part in the cryptocurrency market.
And if you haven’t signed up for Coinbase yet click the picture below:
Thanks for reading,
The GCA Team