Bloomberg reports that only investors accredited in the United States will have access to the Coinbase index fund in the first stage. They must have an income of $200 thousand per year, or a total wealth of $1 million. The minimum investment amount will be $10 thousand.
The Coinbase Index Fund is a very profitable solution, as investors now have the opportunity to track the performance of their entire capital at once, without selectively approaching any one cryptocurrency.
The fund itself will consist of those assets that are on the exchange. First of all, these are Bitcoin, Bitcoin Cash, Litecoin, Ethereum. The share of currencies will correspond to their market capitalization: Bitcoin - 62%, Ethereum - 27%, Bitcoin Cash - 7%, Litecoin - 4%.
Coinbase President Asiff Hirji believes that an index fund is the easiest way for investors to gain access to cryptocurrency assets. If Coinbase adds new assets, they will also be automatically added to the Coinbase Index Fund.
“We are currently working to launch more funds that will be available to all investors and cover a wider range of digital assets,” says the Coinbase blog.
Editor’s Note:
Cryptocurrency Launch index fund is another step towards the integration of cryptocurrency into the modern world economy. The first serious step in this direction was futures contracts for bitcoin.
An index is a tool that will give investors an idea of changes in the total capitalization of incoming crypto assets. Just as changes in the Dow Jones Industrial Average indicate the health of the US industrial sector, the Dow Jones Industrial Average is calculated as a scaled average of the stock prices of the 30 largest US companies. And since the cryptocurrencies included in the calculation of the index have the largest capitalization, we will be able to analyze the state of the entire eco-system of the cryptocurrency world.
According to https://www.bloomberg.com
You May Also Like
Asian crypto exchanges lead in the number of robberies
Cryptocurrency hacks reportedly caused the loss of more than $673 million in 2018. And since the advent of Bitcoin and the cryptocurrency market, these losses have amounted to billions. And although Western exchangers are not immune to hackers, Asian exchanges are the most common victims. For example, Coincheck, Coinrail, Bitfinex, Bithumb, Mt.Gox and Zaif lost about $1.004 billion in total.
New Bitfinex Toolkit Will Improve Crypto Trading
Last week, the Bitfinex crypto exchange introduced users to the Honey Framework, a set of tools for programmable trading on its platform. Now users have the second element of the Honey Framework, its strategic part, to create their own trading strategies.
