Circle Invest, a cryptocurrency brokerage service is targeting crypto index funds with its new “Buy the Market” feature which makes it possible for retail investors to buy market cap-weighted positions in the assets listed platform.
In its recent update, the feature was added to the investing app which provides investors the choice to choose how much they want to invest and then immediately distribute it across the cryptocurrencies backed by the platform according to each coin’s flowing market cap.
Presently, Circle Invest backs bitcoin (BTC), ether (ETH), bitcoin cash (BCH), litecoin (LTC), ethereum classic (ETC), monero (XRM), and zcash (ZEC), and in the future more will be added.
The service comes with no extra charges, which from the look of things Circle hopes to market as a low-cost alternative to the increasing number of cryptocurrency index funds that offer investor with a similar product, although with increased functionality and a more accustomed package.
Recently, Grayscale, Coinbase, and Bitwise Asset Management and several other firms have launched cryptocurrency index funds to make it possible for investors to bet on the ecosystem in general instead of individual assets with the power to have exposure to a range of large-cap coins.
Yet, these funds are presently banned to accredited investors, calls for buyers to make large initial contributions, and charge management fees as high as three percent per annum.