On 12th June 2018, Coinbase, the popular cryptocurrency wallet, and exchange announced that its Index Fund is now open for investments of $250,000 to $20,000,000. Noticeably, whenever any crypto-asset is listed on Coinbase Markets, the Coinbase Index Fund will automatically rebalance so as to accommodate the newly-listed crypto-asset.
In the announcement, Coinbase briefly describes the type of exposure investors might expect from the Coinbase Index Fund, which leverages a simple market cap system of weighting and includes all assets listed on the Coinbase exchange.
Commenting further on what the Coinbase Index Fund will mean for the industry was Brian Armstrong (Co-Founder & CEO, Coinbase), who suggested that:
Announcing: Coinbase Index Fund is open for investment. https://t.co/IVzeO4C6BK
— Coinbase (@coinbase) June 12, 2018
Armstrong went on to highlight how the fund is much more financially feasible, too; undercutting the exorbitant 2–20 percent fees “charged by most crypto hedge funds.”
The Coinbase Index fund, while a simplified diversification tool, is not available to all investors and is only open to US-resident accredited investors at this time. However, the company emphasizes that it is actively working on launching more funds with greater accessibility and market coverage.
Coinbase first announced the new investment product back in March 2018. Since that time, a number of companies have released their own index funds, including popular Asian crypto exchanges Huobi and OKEx.