Coinbase bitcoin exchange launches cryptocurrency index fund
Popular digital currency exchange Coinbase will soon launch a cryptocurrency index fund for investors.
“Coinbase Index Fund will give investors exposure to all digital assets listed on Coinbase’s exchange, GDAX, weighted by market capitalization,” Coinbase product manager Reuben Bramanathan said in a statement.
When a new asset is listed on Coinbase’s exchange, it will be automatically added to the fund.
The new fund will allow U.S. customers to invest in the cryptocurrencies Coinbase currently lists as a whole. Investors will be required to make a minimum $10,000 investment to participate in the fund.
Coinbase currently lists the digital currencies bitcoin, bitcoin cash, ethereum and litecoin in its exchange.
The popularity of cryptocurrencies has led to a wave of digital currency hedge funds and index funds.
Coinbase said it had been considering launching the fund for some time.
“We’re seeing strong demand from our customers and the market generally for a passive investment management product,” Bramanathan told Reuters.
The company also introduced Coinbase Index, which measures the financial performance of all the Coinbase-listed currencies.
Coinbase is the world’s largest cryptocurrency company, and is valued at $1.6 billion. While the company has grown popular as one of most user-friendly exchanges in the cryptocurrency boom, it’s also been sued over alleged insider trading after the surprising listing of bitcoin cash caused the cryptocurrency to skyrocket.
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