Coinbase cuts Index Fund’s annual management fee to 1%
Coinbase, a cryptocurrency exchange ranked 9th on Coinmarketcap, has announced a reduction in its annual management fee for investors. The announcement was made in a blog post published on August 13. The exchange reduced its annual management fee from 2 to 1 percent for all new and existing users. “We’re reducing our fee in order to attract investors who are familiar with lower-fee index funds in other asset classes. This will help introduce a new category of institutional investors into the cryptocurrency space,” read the blog.
The blog post also said that the Index Fund has been rebalanced to add Ethereum Classic [ETC]. Coinbase added ETC to its list of trading pairs last week. The company had revealed plans of listing Ethereum Classic on its platform in the month of June. It also said in a statement that the exchange also intended to add five more cryptocurrencies to its listings; Zcash [ZEC], Stellar Lumens [XLM], Ox [ZRX], Basic Attention Token [BAT] and Cardano [ADA].
The crypto exchange unveiled its first index fund in March and was opened to investments in June with four major cryptocurrencies. The investments towards the fund are open solely to US resident accredited investors. An investor who wants to invest in the range of $250,000 to $20 million should have an annual salary of more than $200,000 or have a net worth of more than $1 million.
Coinbase is one among the top exchanges in the crypto market. The news of Coinbase exploring a coin can lead to a hike in the coin’s value. More coins are attracted to Coinbase’s exchange platform because it offers high visibility along with a heap of other benefits. Ripple’s XRP has been vying for a Coinbase listing since early June but still remains disappointed. XRP has been given the cold shoulder by the crypto exchange based on aspects like decentralization and regulation.
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