Coinbase recently announced their index fund, the announcement post on their blogpost can be found here.
This is huge news for adoption of cryptocurrencies in general as coinbase is one of the leading exchanges in the U.S.
Investors will be able to buy all listed currencies on the exchange through the fund, which consist of Bitcoin, Ethereum, Bitcoin Cash and Litecoin depending on their market cap. The current allocation is Bitcoin 62%, Ethereum 27%, Bitcoin Cash 7% and Litecoin at 4%. The allocation will reset once every year on January 1st.
At the same time they introduced Coinbase Index as well which is a measure of the financial performance of all assets that are listed on GDAX. Here is a chart of the Coinbase Index:
Bear in mind that there is a $10,000 minimum investment for the index fund and 2% will be charged annually as a management fee but without a performance fee which usually is rare for investment funds.
Investments for the Index fund are only possible for US-based accredited investors.
Coinbase doesn't plan on stopping here with the different currencies that are added to the fund and in the near future it will not only rely on the currencies that their exchange GDAX has listed or will list.
If you want to read more on the criteria of assets to be listed on GDAX you can find that information here.
They also released a Construction and Methodology document on the index which can be found here.
I am personally very excited for this as bigger investors might not be interested in investing in assets one by one and having to make sure to keep them safe in cold storage themselves hence trusting coinbase with it. This could lead to a lot of new players entering the space and it could mean new heights for blockchain technology and evaluation this year.
Of course if you know how to keep your coins safe, they are the safest if only you hold the private keys to them. :)
"I am personally very excited for this as bigger investors might not be interested in investing in assets one by one and having to make sure to keep them safe in cold storage themselves hence trusting Coinbase with it"
This is vital, make it easy for new investors to take a small crypto portfolio. Great news.
This is really great news, would make trading in crypto currencies more comfortable and would bring about more trust into the market. Coin base would be like a goody bag of cryptos there by making it easier for people to trade in it
Thanks for the update @acidyo. As a Coinbase customer, this is vital to me.
However, as I was perusing the net this evening, I came across a report that Coinbase have been dragged to court - lawsuit due to inside trading. Remember the Bitcoin Cash issue? Yes that one.
what's your take on this?
Can't say for sure, I remember there being some rumors about an API of BCH leaking before the announcement which could've been a reason to the pump but who knows... Gotta be hard to trust your co-workers not to gamble on currencies when there's a lot of ways for them to privately without trace contact outsiders to tip them off.
And my bubble has burst... it’s looking like your going to have to be a credited investor to buy into the fund
Oh, thanks will add that to the post.
Sad day! I need to work on that net worth.
Ahhhhhhhh, drats. Great find Mike!
Big news... Good or bad???
This is great news. I love that they are planning to include more coins than just those they list on their exchange, though makes sense to start with those.
Thanks for the methodology doc. The GDAX framework one I already had and actually did a video applying it to STEEM and another coin a couple weeks back. Now I want to go through the index doc and apply that to a few possible coins.
Having $10,000 isn't enough. It's sad that I can't even partake.. OOh, yay. Rich people only.
Iconomi has much better index's. I have invested in BLX. It is great to have exposure to a vast array of crypto currency without having to maintain a billion wallets.
Coinbase current index is nowhere near comparison.
A credited investor...bah humbug, just take the percentages they listed and copy it.
Good news for crypto adoption. Folks might be more comfortably buying an index fund by coinbase than actual crypto.
Thank for the news @acidyo, good to hear something positive on adoption in the time when bitcoin volume and adoption seem to be declining...
Great news!
As we can see huge investors are now getting involved in cryptocurrencies. Some people may expect a high rise in value on every crypto coin, but expecting something may always fail sometimes, or all the time. I guess the least expectation may always win over the too much of expectation.
hahaha that gif fits great lol
@acidyo This is Great adoption of cryptocurrencies In continuous increase :)
The search for "Bitcoin" in Google Trends just so happened to surface again after this announcement. https://steemit.com/cryptos/@coolkidapproved/today-s-top-trending-cryptocurrency-march-7-2018
The Beauty is the little guy can still buy individual crypto and not worry about weighting by this index. Everything gets easier for all noobs coming into the Crypto's over the next few months. We will see some Big moves as more people are coming in..........@acidyo
I am apprehensive with this as just 6 hours earlier they were hit with a suit for insider trading in regards to the Bitcoin Cash Fork.
This is extremely incredible news, would make exchanging cryptographic forms of money more agreeable and would realize more trust into the market. Coin base would resemble a goody pack of cryptos there by making it less demanding for individuals to exchange it. @acidyo
thanks for the update.jpeg)
That's an amazing news because people will be able to buy cryptocurrency with fiat and they will be more comfortable buying it in a place like coinbase the doors are open. Regards
Exceptionally energizing news, I think many individuals have been suspecting something like this... I was trusting Bancorp would do this one day however looks like Coin base is getting the best of them.
Great info @acidyo
100 points for coinbase, I like this platform is friendly and apparently very secure.
Very exciting news, I think a lot of people have been anticipating something like this... I was hoping Bancor would do this one day but looks like Coinbase is beating them to the punch.
This is awesome. Just needs to become available in Canada!
I love this post, it really is good news!
terimakash info pasar nya, posting yang sangat saya sukai
is this like investing in a crypto mutual fund in coinbase
It's really cool to see cryptocurrency become more available for mainstream investors. Widespread adoption will make the current coins we've all got become that much more valuable.
I hope this will end some FUD and keep crypto stable.
wow very excellent post Thanks for sharing i will done upvote.....
Scared money, don't make no money. It looks like people have less reason to be scared this way. Cue the new money. I just wanna know what wallets people are using to hold their coins, aside from a physical ledger. Not able to make that purchase just yet..
nice and important information, it will be helping me as a new comer. thanks @acidyo
Accredited investors only? How is this great news. C20 is much better, anyone can buy not just rich Americans https://steemit.com/crypto20/@abitcoinskeptic/crypto20-c20-fund-and-the-new-umbrella-funds but what do I know, I'm just a cat 😻
This is a great idea, now you can have all mayor coins into one.
This is awesome especially for retirement IRA/401K accounts.
Great news. For sure would put this in my retirement portfolio.
It’s a Index Fund for ALL investors including retail investors.It’s only available for accredited investors first initially, however soon it will then be opened up to anyone. WUHOOOOO
Great införmation as I use Coinbase! The market price will probably go up! YAY!
Coinbase is pretty reputable, but totally, holding your own keys is probably best :)
Wow Coinbase is such a turtle. They are so dissimilar form the rest of the industry. Seems like all of their news-stories are debated and weighed by experts the way the nightly news was back in the 80s. Thanks for the update on their index.
from pixabay
My wife uses cold storage, but I've not migrated there (yet). Personally, @acidyo, I'm happy with using the vault feature in Coinbase, for stuff I don't intend to touch anytime, soon.
Thanks, for sharing this good news for cryptocurrencies and hopefully good 'ole Steem :)
this is an information that we follow and thank you for sharing the information.
Thanks for sharing this @acidyo - I hadn't come across this announcement.
This is good news in cryptocurrency for big investors. The enlisted coins are just so perfect as storage won't be an issue for big investors anymore. I have a few questions i want to ask but first i will have to make my own research then get back to you @acidyo for the enquiries.
Coinbase just gearing up for the institutional inflow that will take hold this year. Fun times ahead once custodial protocols are put into place and the lawyers with pointy shoes sign off on it.
What are your favorite alt coins you see making solid short term gains regardless of volitikity over q3-4 this year
Okay mr @acidyo i have to upvote you and reblog you... Would you like to upvote me back?
Hello @acidyo sir...
Thanks for bringing this encouraging news to the fore. I am very happy at how things are positively turning out for blockchain technology and the entire cryptocurrency community. News like this strengthens investors confidence. And that's exactly what we need at this stage of Crypto development.
That's exactly what's going to happen! And I am excited as well.
@eurogee, the founder of @euronation community
This will certainlly be appealing to the "banksters" :) and might just drive the market cap to new hights.
really very nice post thanks
Thanks for the article. there is speculation that Ripple and NEO will join Coinbase. What are your thoughts on this? Cheers Andy
This kind of puts a bit of a gap between those 4 coins and others, it'll be even harder to climb into the top 4
Also very unfortunate that it lends some unwarranted legitimacy to bcash.
I love it when I read about positive changes in the platforms, even though I am new in this I am educating myself and I must thank for that updated content.