Coinbase Crypto Index Fund Product Discontinues as Shift Towards Retail Investors Begins
Coinbase Decides to Shut Down their Index Fund Product, Despite Only Launching This Year
A spokesperson for Coinbase has confirmed the decision to shut down the Coinbase Index Fund, a product that focused on supporting institutional investors. The product was launched earlier this year and will not be inactive until the end of the month. Instead, users will be instructed to use the Coinbase Bundle product.
In the statement, the spokesperson said, “After assessing demand from retail, accredited and institutional investors, Coinbase has decided to shut down Coinbase Index Fund. We will focus on providing diversified exposure to all investors through Coinbase Bundle.”
The bundle is offered to all customers of Coinbase, rather than being restricted to institutional investors. There’s no accreditation needed, and the minimum required investment to get involved is only $25. With the former Index Fund, the minimum deposit was $250,000. The spokesperson wrapped up their statement on this topic by saying,
“We've decided to refocus the resources devoted to managing the Coinbase Index Fund to other parts of the business.”
The Coinbase Index Fund has been short-lived, after being announced in June and launched officially in June. At the time, product lead Rueben Bramanathan said that institutional investors had the opportunity to invest up to $20 million in the product. This launch also made a way for institutional investors to get involved with Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin. If other tokens are added to their trading platforms, they will also be integrated into the new product.
Coinbase has been announcing new developments constantly as of late. Yesterday, they confirmed the addition of the 0x Protocol token (ZRX) that they were adding to Coinbase Pro, a professional trading platform. In the morning today, the exchange was only permitting deposits, but the ability to trade came later in the day.
Unfortunately, though the token cannot be accessed or traded through Coinbase or its related apps, Coinbase plans to add the token to other platforms soon.