Crypto Exchange Coinbase Shuts Down Index Fund Due To Lack Of Interestbr>
Cryptocurrency exchange Coinbase is shutting down its crypto index fund product by the end of the month due to weak interest from investors.
The Coinbase Index Fund, which was announced in March of this year, was designed to give accredited US investors easy access to the crypto market by offering them an index that represents a basket of the exchange’s listed assets. Since its launch in June, however, the fund failed to attract the necessary number of clients, raising less dollars than the company expected.
The exchange is now reportedly shifting its focus to “Coinbase Bundle,” a recently announced retail product that allows users to buy a market-weighted sampling of Coinbase’s five available cryptocurrencies: bitcoin, ethereum, Bitcoin Cash, Litecoin and Ethereum Classic.
“After assessing demand from retail, accredited and institutional investors, Coinbase has decided to shut down Coinbase Index Fund,” a Coinbase spokesperson said. “We will focus on providing diversified exposure to all investors through Coinbase Bundle.”
The new product allows users to invest as little as $25 in the basket of tokens, compared to a minimum required investment of $250,000 for the index fund. Coinbase Bundle is also open to all customers and does not require any accreditation.
“We’ve decided to refocus the resources devoted to managing the Coinbase Index Fund to other parts of the business,” the spokesperson said.
Coinbase is not the first company to offer a crypto basket product. In May of this year, crypto platform Circle launched a feature called “Buy the Market,” which allows users to buy all cryptocurrencies available on its Circle Invest app, weighted depending on their respective market capitalization. Since the addition of the Buy the Market feature, the Circle Invest app has garnered solid reviews on Apple’s App Store. However, the app remains unpopular and currently holds the #734 spot among finance apps, according to App Annie.