Coinbase Index Fund opens a window for investments up to $20M 14523
Sharat Chandra
Jun 13, 2018 at 9:54 PM

Coinbase is a San Francisco, California based, digital currency wallet and platform where merchants and consumers can transact with cryptocurrencies like bitcoin, ethereum, and litecoin. Coinbase has raised close to $217 million from leading investors across the globe. On March 7th, Coinbase had announced the launch of Coinbase Index Fund which would give investors exposure to all digital assets listed on Coinbase’s exchange, GDAX, weighted by market capitalization. Index funds have altered the way that many people treat investing. By presenting diversified exposure to a wide range of assets, index funds allow investors to follow the performance of an entire asset class, rather than having to select individual assets.

Coinbase announced that Coinbase Index Fund is open for investments from $250k to $20M for the US accredited investors only. The index consists of all assets listed on Coinbase and weighted by market capitalization. Coinbase reiterated commitment to launching additional funds that will be accessible to all investors covering a more extensive range of coins. The Coinbase Index Fund will be restructured to include Ethereum Classic, and more assets as and when they get listed on Coinbase platform in the future.

Coinbase Asset Management website explains, "Coinbase Index Fund seeks to track Coinbase Index (Fixed Supply) — a version of Coinbase Index that removes the effect of ongoing supply increases, to make the index capable of being tracked. Each time that an investor invests in the fund, the fund deploys the investor’s capital by buying assets in proportion to their weighting in the index. When an investor wants to leave the fund, the fund can sell assets in proportion to their market weighting in the index at that time, and return the proceeds to the investor."

The current composition of Coinbase Index Fund includes Bitcoin : 61.47% , Ethereum : 27.17%, Bitcoin Cash : 8.22% , Litecoin :3.14%. Assets get guaranteed protection by Coinbase industry-leading standards. Apart from 2% annual management fee, there are no additional performance fees involved.

Image via Medium

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