The popular American exchange Coinbase announced the launch of the index fund Coinbase Index Fund, which will allow US-accredited investors to work with all current and future assets in the listing of the GDAX exchange.
With the help of the new fund, investors will be able to monitor the performance of the class of digital assets in general without having to choose any specific cryptocurrency. To this end, the company launches the Coinbase Index, which displays the financial performance of all assets on GDAX based on their market capitalization.
The minimum deposit size for participation in the fund is $10 thousand. The fee for managing funds is 2%, there is no incentive commission, which is not so common in traditional markets, but it already becomes the norm for cryptocurrency passive investment mechanisms.
The index fund will be the first tool of the new Coinbase asset management division. The basket will include all the digital assets represented on GDAX in the following ratio: 62% – Bitcoin, 27% – Ethereum, 7% – Bitcoin Cash, 4% – Litecoin. Coinbase will rebalance the basket when new digital currencies appear on GDAX.
The new Coinbase investment tools will not be limited to the GDAX offering, but today this approach is the best for maximizing liquidity.
Investors can deposit their deposits both in US dollars and in any of the cryptocurrencies represented in the fund. Currently, Coinbase only accepts American accredited investors, but in the future plans to remove this restriction. Deposits can be made on a monthly basis, withdrawals are made quarterly. The period of restriction on withdrawal of funds is not provided. All funds invested by investors will be kept on “cold” wallets.
Earlier Grayscale launched a crypto-trusts tied to Ethereum, Litecoin, Ripple and Bitcoin Cash. Each fund is part of the Digital Large Cap Fund, which was announced last month, but was not previously available separately. Executive director Grayscale Michael Sonnenshajn has underlined, that the company is not going to stop on what it has reached and will continue to release new products for its clients.
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