One of the masters of the cryptocurrency industry, the American platform Coinbase announced the launch of a new index Fund Index Fund Coinbase, which will allow investors to work with all current and future assets in the stock exchange’s listing GDAX. Initially, the new index Fund will be available only to accredited investors from the US, but in the future the company plans to establish several funds to work with retail investors.
For many traditional institutional investors to provide access to the cryptocurrency markets is very difficult, partly because of the difficulties associated with handling of private keys and the reduction of partnership risk. As a result, in most cases, the Bitcoin market is dominated by retail investors. Just as happened in late 2017 launch regulated U.S. futures on bitcoin, the Coinbase announcement on the opening of Index Fund managed by a new division asset management is evidence of further maturation of the cryptocurrency market and increasing the range of innovative financial products.
To new and useful investment products continued to develop and provide broad access to the cryptocurrency market, Coinbase has started to cooperate with regulators and government representatives. In addition, the team of the exchange was joined by many new employees, including the former head of Finance at NYSE Eric Tailor (Eric Scro) and Emily Choi (Choi Emilie) from LinkedIn.
With regard to the principle of the new product — in simple terms, Coinbase creates a Fund based on the index of cryptocurrency, which will produce a rebalancing of the basket in accordance with the total market value of the included digital assets. The minimum Deposit for participation in the Fund is $10 000. The management fees are 2% per year. With regard to the Fund’s portfolio, now it will include bitcoin, litecoin, ether and bitchesa in the following ratio: