The popular cryptocurrency exchange, Coinbase is launching the first weighted cryptocurrency index fund. The Chief Operating Officer and President of Coinbase, Asiff Hirji has said that this move will help the investors to know the cryptocurrency assets we are offering on our digital exchange, such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
Mr. Hirji decision of launching the cryptocurrency exchange is influenced by the increasing interest of investors in the cryptocurrencies since the last year.
Talking further, he said, “The index is easy to use and a great way of getting exposure to cryptocurrencies that are available on Coinbase.”
“In the year 2017, the trading volume has increased around 30 times and growing at this pace without having any obstructions in the market is very tough. We at Coinbase had faced some bumps. Our platform has grew over 40 times and the capability of support has grew up to 600 times.”
“It is not still enough, more and more customers or investors are still not getting the support they want.”
This new Index Fund of Coinbase will be exclusively available to the US investors and will also provide an access to GDAX (an exchange regulated by Coinbase).
The renowned cryptocurrency exchange, Coinbase is launching this index exclusively to accredited stakeholders or investors post warning from the SEC (Securities and Exchange Commission) of US that are concerned regarding the financial products of cryptocurrency.
Asiff Hirji explained CNBC that the Coinbase Asset Management is a legal entity that is different from Coinable and secure the investors.
“The entity will weigh the digital assets, purchase the funds and assets, and rebalance the assets when the index will increase or decrease. Customers can redeem or invest eventually.”
“With the time, we can expect that it will well expand among the investors and Coinbase is constantly working along with regulators to make it happen.”
According to Coinbase, similar to the 30 stocks of Dow Jones Industrial Average that shows the stock market of the economy of America, the fund will depict the latest trends in the crypto market.
The cryptocurrency index fund launch marks $1.6 billion of Coinbase in the asset management and the same will be weighed through market cap.
Reuben Bramanathan (Product lead of Coinbase) said that the traders ‘strong demand’ for an innovative ‘investment management product’ made the decision of launching this index.
Further, he said, “We are witnessing a high demand from the investors, basically for investment management product.”
“So, finally after seeing such a huge demand we are launching this index fund now.