Coinbase Launches Four-Coin Index Fund That’s Only For Accredited Investors
Just recently, Crypto exchange and wallet Coinbase made an announcement that they’ll be creating a Coinbase Index Fund and Coinbase Index in a Medium post.
“The Coinbase Index Fund, whose “basket of digital assets” includes all of the Coinbase exchange GDAX’s four coins — Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) — is open to all US-resident accredited investors–defined by those having a net worth of more than $1 mln or a yearly salary of more than $200,000.” Reported Coindesk.
“There will be a 2 percent annual management fee, and a minimum sum of $10,000 is required to invest in the four-coin index fund,” added the report.
According to them, the Coinbase Index will track the performance of the GDAX’s four coins based on the “Ongoing increase in the supply of each asset,” and not just the asset’s price.
In line with Cointelegraph’s reports last year, the problem with diversifying a cryptocurrency portfolio is the fact that most altcoins follow whatever trend that Bitcoin sets. And similarly, the result of the price fall of Bitcoin will also see the downfall of altcoins’ prices, implying that “diversification into other coins provides a little market hedge.”
It’s been realized that Coinbase has recently been in the news when they informed around 13,000 of their customers of a mandatory turnover of their personal data to the Internal Revenue Service (IRS) following a partial court case win against the IRS’s original request for the data of every Coinbase customer.
“Coinbase is also currently being sued in two new lawsuits brought forward in early March. The first is a class action lawsuit alleging that Coinbase employees benefited from trading on the advance knowledge that Coinbase was set to add BCH to its assets last December.” Reported CoinDesk.
