Coinbase announced they would be launching a cryptocurrency based index fund.
This news was somewhat lost in the shuffle of the wave of negative headlines that came out over the past few days, but it is very significant news in my opinion.
Coinbase said they will be launching this index fund due in part to large institutional type demand.
New money has been coming in but they don't really know which coins to buy.
This new index fund will take the guess work out of it and allow asset managers to have exposure to a non correlated asset class that has also been outperforming as of late.
Some specifics:
The index fund will be market cap weighted.
Meaning, the larger the market cap, the larger the influence on the index it will have, much the same way that the Dow Jones Industrial Average works.
The weighting will be as follows:
Bitcoin - 62%
Ethereum - 27%
Bitcoin Cash - 7%
Litecoin - 4%
As new coins are added the exchange, they will also be added to the Coinbase Weighted Index Fund.
Investors can start signing up for the product now, but it won't be officially launched for a few more months.
Also, the fund will only be available to accredited investors at first, but hopes to be available to all users over time.
More info about the launch can be found here:
http://www.businessinsider.com/coinbase-cryptocurrency-index-fund-2018-3
Other cryptocurrency products also on the way?
Grayscale also announced the addition of 4 new cryptocurrency based funds.
If you recall, Grayscale launched GBTC, a bitcoin investment trust a few years back. Currently it is one of the only "traditional" assets that offers exposure to bitcoin.
The 4 new funds will offer exposure to:
Ether
Ripple
Bitcoin Cash
Litecoin
However, like the other newly launched Grayscale products, these will only be available to accredited investors initially.
Over time, these products will likely also be made available to the retail public much the same way that GBTC is.
More about it can be seen here:
https://www.ccn.com/bitcoin-investment-trust-creator-launches-four-new-crypto-funds/
Stay informed my friends.
Image Sources:
https://www.ccn.com/bitcoin-investment-trust-creator-launches-four-new-crypto-funds/
Follow me: @jrcornel
I'm glad Ripple is not making it to Coinbase any time soon, and also that it won't be included in that index.
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If that happens then man I can see some more interesting and useful things happening in the crypto space in the coming years. It will add so much confidence and faith in the community and investors that it is going to be just awesome.
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I’m relying on Coinbase to help drive the market forward as well as provide top notch security. I’m working on storing my crypto offline, but still trying to figure that one out! Lol Thanks for the post!
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And yet people still believe that this is just a scam and will fade away soon.
Don't fall for the FUD
@crypto2crypto
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Even though people did not really care about this news, (probably due to the fact that they expected something else) I feel like this is actually really neat and will bring a lot of new money into the crypto-market. One of the key points of people not getting into crypto is due to it being very complicated, but this makes it super-easy.
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Yes it takes the some of the guess work out for institutional money while also allowing for exposure to the space.
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Yeah, changes like these are welcome.
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Ugg, the centralized powers love affair with Ripple kinda sickens us.
If you're interested in the CIF, here's more analysis of it...
https://steemit.com/money/@harpooninvestor/let-the-games-begin-the-cif-coinbase-index-fund-is-the-beginning-or-the-end
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Im buying as many alt coins as i can afford right now, but coinbase being our flagship success as a means to getting into crypto, they need to really step up their game emmensely. News is one thing, results are another, until they make it up to us for this bcash situation that caused a tonne of this fud in the first place. We need updates, news, up to date roadmaps, the point of decentralization is transparency and teamwork, its a community effort let us help!
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It's definitely been a day of filling my crypto bags! Shoutout to Coinbase though, they've been holding it down and will continue to grow and be a reliable place to purchase and store your coins. I'm interested to see what the next coin they might offer. The buzz has been big recently and I'm quite excited to see which of the choices they are going to make. In the meanwhile I'm still loving it at Binance making some sweet trades with all of these dips!
Respect.
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"but coinbase being our flagship success as a means to getting into crypto, they need to really step up their game emmensely" - when you understand what separates CB from other companies in terms of B=MAT and ease of use, you know there is zero reason for them to do anything differently.
Not sure if people realize this but CB has no real competitors UX wise.
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increase adoption for the asset class. It gets cryptocurrencies much closer to be an investable asset class although only for accredited investors at this point. This will be a great opportunity for volumes to increase as markets in the space still remain inefficient so prices may not always reflect true demand/supply economics. It will also help those bigger investors that are on the sidelines and hesitant given concerns on security and knowledge about the function of digital wallets.
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Much like how the Dow Jones Industrial Average gives a sense of the American economy, this fund tries to reflect major trends in the cryptocurrency market.
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Coinbase having a hard time, as the giants are breaking its news and impact on coinbase is negative. Coinbase vision seems high!
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Active managers can certainly outperform, though historically if you look to stock active managers, they traditionally under-perform the index funds over the long run...
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Thank you infonya, this post is very useful. Hopefully these funds are available to all.
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despite critics coinbase is still the biggest player
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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.
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Very useful post
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So if I am invested in the fund and the prices start dramatically going up or down will they halt all trading like they do with the individual coins? Coinbase is a great way to get your feet wet with crypto, but it still has so many flaws. It will be interesting to see how it evolves.
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Coinbase is a die hard to those four coins
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The main walk away that everyone should pay attention to is the paragraph:
In a letter signed by Dalia Blass, the SEC's director of the division of investment management, the agency said: "There are a number of significant investor protection issues that need to be examined before sponsors begin offering these funds to investors."
Thanks for bringing this to the steemit community's attention!
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7% of Bitcoin Trash, yikes.
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@jrcornel yeah i recently read out this artice
Coinbase is launching a weighted index fund for cryptocurrencies.
Much like how the Dow Jones Industrial Average gives a sense of the American economy, this fund tries to reflect major trends in the cryptocurrency market.
"It's an easy way to get exposure to the crypto assets that we offer on our exchange," says Coinbas President and COO Asiff Hirji.
and yeah i also thinks that it's a significant news
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Initially I thought this was cool but it's actually rather pathetic. You cannot make an index out of essentially 2 holdings (ETH & BTC...the other two only make up 11%)....this would make sense if there were dozens of coins on coinbase but at this point it's silly. Most indexes are made up of dozens or hundreds of securities. If there are only 4 available, you don't need an index to invest, it's pointless.
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An ambitious move by coinbase and I think it must not come as a surprise because Coinbase are the market leaders of crypto world...
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good introducetio im like this your information please dont forget upvote me back
https://steemit.com/steemit/@basyir123/how-to-collect-bitcoin-that-much-by-way-of-new-game-play-the-new-version-f4ec2a8fda346.jpeg)
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Interesting that they are building more institutional access to crypto without opening up fiat un-ramps. Looks to me like they are blocking the general public to let the big boys in first.
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The news on the index fund continues to pave the way to increase adoption for the asset class. It gets cryptocurrencies much closer to be an investable asset class although only for accredited investors at this point. This will be a great opportunity for volumes to increase as markets in the space still remain inefficient so prices may not always reflect true demand/supply economics. It will also help those bigger investors that are on the sidelines and hesitant given concerns on security and knowledge about the function of digital wallets.
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I think coinbase future is bright
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What a great post. It's really outstanding.
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nice post😍
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Things are looking up guys 😊
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it will be help for us, thanks for sharing
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Coins mentioned in post:
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