Coinbase Starts Index Fund For US Investors – $10,000 Minimum Needed To Get In

Investing, News, Regulation | March 7, 2018 By:

The Coinbase exchange is starting an index fund that tracks four of the biggest virtual currencies on the market.

The aptly named Coinbase Index Fund will deal in bitcoin, Bitcoin Cash, ether and Litecoin, all currently directly traded on the exchange. The move expands Coinbase into more of a financial services firm, growing its

The index fund will be available only to US accredited investors, those who have annual income of at least $200,000, or a net worth of at least $1 million. Coinbase is hoping to launch a similar fund available to all investors regardless of wealth, likely structured as an exchange-traded fund, if regulators approve.

No timeline has been set for the lower-end offering or when the index will start trading. The Coinbase Index Fund will  require a minimum investment of $10,000 and weights its cryptocurrency holdings proportionately by their market caps.

“Index funds have changed the way that many people think about investing,” said Reuben Bramanathan, a product manager at Coinbase, in a blog post. “By providing diversified exposure to a broad range of assets, index funds enable investors to track the performance of an entire asset class, rather than having to select individual assets.”