The world’s largest exchange Coinbase has been making a lot of noise lately. Just yesterday, they surprised everyone by announcing the inclusion of Ethereum Classic. Initially revealed in March this year, Coinbase finally launched their Crypto index fund to accredited investors in the United States today.
At the moment, the fund is open to those who wish to invest between $250,000 to $20 Million. The index fund consists of all cryptocurrencies, weighted by their market cap which will be automatically rebalanced as the cap changes. The recently announced Ethereum Classic will also be included once it has been made live on the exchange.
One of the most notable feature of Coinbase index fund is that there is no performance fee. Instead, there is a flat 2% annual fee irrespective of the performance. Since the fund is open to only American investors, they’ll only be accepting US dollars. At the current moment, the fund has four cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash and Litecoin with Bitcoin making up more than 60% of the fund.
Brain Armstrong, CEO of Coinbase also tweeted out the advantage of using the fund that it had one of the lowest fee compared to other crypto hedge funds.
Investing in Coinbase Index Fund is the easiest way to get exposure to a broad range get of crypto assets.
Much cheaper than 2 and 20% charged by most crypto hedge funds, and you get new assets automatically added to the fund as they become available on Coinbase. No rebalancing. https://t.co/TyOnDuFMT9
— Brian Armstrong (@brian_armstrong) June 13, 2018