On a recent 1000% increase in transaction capacity, Coinbase restructured their code base and APIs. CryptoSlate has integrated with the leading cryptocurrency platform to make real-time Coinbase Index Fund information available via our news platform, delivering prime market insight as Coinbase sets the stage for the potential introduction of crypto ETFs.
Coinbase announced the integration with CryptoSlate via Twitter, confirming the new live Coinbase Index feed on the CryptoSlate homepage:
— Coinbase Index (@CoinbaseIndex) May 9, 2018
What is the Coinbase Index Fund?
The recently-launched Coinbase Index Fund exposes accredited investors to the four different cryptocurrencies listed on the Coinbase exchange platform, GDAX, and is the company’s first push into asset management services.
The Coinbase Index weighs assets by market capitalization and takes a variety of factors into account, including the ongoing increase in the supply of each asset as well as price fluctuations.
Coinbase may not be the first platform to launch a cryptocurrency index fund — organizations such as Bit20 have been offering passively managed funds since December 2016 — but the launch of the Coinbase Index Fund carries substantial weight in the crypto ecosystem.
As a fully-registered money service business with FinCEN since 2013, a history of over $150 billion in trades and more than 20 million users, Coinbase is a driving force of cryptocurrency adoption.
The Next Step For Crypto Adoption
The development and launch of the Coinbase Index Fund is a significant step forward for the cryptocurrency market.
An index fund is a form of mutual fund that tracks the returns of a market index. In this case, an index is a group of cryptocurrencies that represents a specific segment of the market — Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
The Coinbase Index Fund is structured as follows:
- Bitcoin: 62%
- Ethereum: 27%
- Bitcoin Cash: 7%
- Litecoin: 4%
Importantly, the Coinbase Index Fund is also one of the only fully regulatory compliant crypto index funds available in the market.
In March 2018 Coinbase filed a Form D 506c with the US Securities and Exchange Commission. The filing also made it apparent that the Coinbase Index Fund is only available to “accredited investors” under SEC definition, which means investors must meet the following requirements:
- Have earned income that exceeded $200,000 (or $300,000 together with a spouse) over the last two years, and reasonably expect the same for the current year
- Possess a net worth over $1 million, either alone or together with a spouse
The Coinbase Index Fund isn’t designed to benefit high-speed day traders, however — it can be considered as an investment in the future of blockchain technology itself.
For individuals that are new to the blockchain sector but interested in investing in cryptocurrency, a professionally managed index fund is an attractive choice, providing a simplified, diversified, and automatically-rebalancing method of investment.
Index Funds are Indicative of Market Health
As institutional capital begins to make strong entrances to the crypto market and cryptocurrency investing becomes more accessible and interesting to the public at large, managed fund options such as the Coinbase Index Fund will become increasingly attractive to retail and institutional investors alike.
By making cryptocurrency-based index funds simple, transparent, and streamlined, Coinbase is pushing the adoption envelope as the market rapidly matures.
By delivering live Coinbase Index Fund updates through our integration with Coinbase, CryptoSlate aims to continue to provide our readers with highly accurate market data as it occurs.
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