Coinbase recently opened its Index Fund to investors. Accredited US investors now have open access to all cryptocurrencies listed on GDAX, the crypto-exchange by Coinbase. The company aims to launch more funds which will be available to all investors and which will also include a wider range of digital currencies.
In the words of Reuben Bramanathan, Product Lead of Coinbase Asset Management,
“We’ve seen overwhelming interest from investors since we announced the fund earlier this year. Coinbase index Fund gives investors exposure to all assets listed on our exchange, weighted by market capitalization…At this stage, Coinbase Index Fund is only open to US-resident accredited investors. We’re working on launching more funds which are accessible to all investors and cover a broader range of digital assets.”
Furthermore, the company is also working on offering Index Funds to all US investors and not just those who are accredited. The company’s website states –
“In the future, we hope to be able to offer index investing to customers in the US and internationally.”
The Index Fund by Coinbase is a private fund that will track Coinbase Index (Fixed Supply). The index will be a measure of the overall performance of all the cryptocurrencies that are listed currently on Coinbase’s exchange, GDAX.
The minimum investment amount for the Coinbase Index Fund is $250,000 and the maximum is $20 million. The Fund has an annual management fee of 2%.
The company notes –
“The assets are weighted by market capitalization. The Index level takes into account the ongoing increases in supply of each asset, not just changes in price. The Index is reconstituted each time that a new asset is listed on GDAX,” for e.g. the recent addition of ETC. “Unlike actively managed investment funds [the fund manager of its Index Fund] does not actively trade assets, or target a specific allocation for any asset.”