Coinbase shutters its crypto index fund aimed at institutional investors
Coinbase, the San Francisco based cryptocurrency exchange, has been working to drive institutional investments into the crypto industry. The exchange has released products that will help institutional investors to tap into the blockchain world. It has launched a suite of institutional products to welcome institutional adoption of cryptocurrencies.
Amidst these recent developments the company has announced that it will shut down its crypto index fund aimed at institutional investors, according to a report by Coindesk. The crypto index fund, only open to US accredited investors, seeks to provide exposure to a wide range of digital assets to institutional investors and also keep track the entire asset class rather than just individual assets. The investors could invest $250,000 to $20 million into the product.
"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," said the company spokesperson. "We've decided to refocus the resources devoted to managing the Index Fund to other parts of the business," the spokesperson added.
According to a report by The Block, the index fund failed to attract the required number of clients and earn the expected profit. However, at the time of the launch an executive from the company told that the exchange was facing strong demand from institutional and high-net-worth individuals.
According to the spokesperson the company will focus on Coinbase Bundle, another product from the Coinbase suite of products intended to attract retail investors. Coinbase Bundle is a market-weighted selection of the five cryptocurrencies available to buy and sell on the exchange. You can buy a bundle of 5 cryptocurrencies for as little as $25. The Bundle consists of Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and Ethereum Classic (ETC); the smallest Bundle costs $25, £25, or €25, according to the Coinbase blog.
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