coinbase

Coinbase Moves to Asset Management, Opens Investment in its Index Fund

March 7 became a seminal event in the history of Coinbase when it announced that the company would be starting it own Index Fund opening doors to Institutional Investors. Nearly, after 3 months the company has progressed on this and has opened the fund for investment.

Details of the fund

Coinbase Index Fund gives investors exposure to all assets listed on our exchange, weighted by market capitalization. Coinbase’s announcement said  that they have received overwhelming response from investors since the company announced its fund in March. Hence a decision has been taken to only open up the fund to people who wish to invest anything between USD 250,000 to USD 20 million.

https://blog.coinbase.com/coinbase-index-fund-is-open-for-investment-61217606f1ef

The other details of the fund include

  1. The Fund would hold a basket of Digital Assets- All assets that are listed on GDAX weighted by market capitalization
  2. There will be no Performance Fee to Start with. The company will charge on 2% management fee annually
  3. Asset Protection is secured by Coinbase security standards- one of the best in the Industry
  4. The Manager of the Fund would be  Coinbase Fund Manager, LLC
  5. The investment window would be on monthly basis while redemption window will be on quarterly basis with a 30 day notice to be provided in advance
  6. The Fund is currently open to only US citizen and accredited investors

Also, read: US Regulator Subpoenas Coinbase, Kraken, Bitstamp & ItBit in Bitcoin Manipulation Probe

Coinbase shares excitement

Index Funds have changed the way investing works in the past as well. Coinbase index fund will allow   institutional investors to invest in cryptocurrencies giving cryptocurrency a near asset like investment status which could be a game changer. The company announced on Twitter that

“ Index funds have changed the way that many people think about investing, providing diversified exposure to a broad range of assets in one tool. We’re looking forward to giving clients the ability to invest in the potential of blockchain-based digital assets”  

“Coinbase Index Fund gives investors exposure to all assets on our exchange, which will soon include Ethereum Classic. We’re working on launching more funds which will cover a broader range of digital assets.”

With Institutional money flowing into cryptos, the investing in crypto will definitely see a paradigm shift as trust and faith in cryptocurrencies would increase closing it towards acceptability in real life.

Will more mainstream Wall Street Investment Firms follow the pursuit that Coinbase has started? Do let us know your views on the same

 

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Coinbase Moves to Asset Management, Opens Investment in its Index Fund
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Coinbase Moves to Asset Management, Opens Investment in its Index Fund
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March 7 became a seminal event in the history of Coinbase when it announced that the company would be starting it own Index Fund opening doors to Institutional Investors. Nearly, after 3 months the company has progressed on this and has opened the fund for investment.
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About Nilesh Maurya 54 Articles

Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies.