Attracting institutional investment into the cryptocurrency sector is turning out to be quite challenging for many different reasons. However, Coinbase’s new Index Fund may have a role to play in this regard, especially now that the project is open to accredited investors who are willing to dispense anywhere between $250,000 and $20m USD.
The Future of Coinbase Index Fund
Although it remains to be seen what the future will hold for Coinbase Index Fund, a lot of things can happen in the coming few months. This new venture by one of the world’s biggest cryptocurrency trading platforms is mainly designed to attract institutional investors who want to be exposed to cryptocurrencies and digital assets.
With the Coinbase Index Fund now live, interested parties can contribute anywhere between $250,000 up to $20m. Investors will be exposed to all of the current and future assets listed on the Coinbase platform, which are weighted by market capitalization. The platform will also accommodate Ethereum Classic, a decision which has been recently confirmed by the Coinbase team.
As one would come to expect, the Coinbase Index Fund will only be open to US residents for the time being, with the situation not looking to change in the near future.
Exposing investors to cryptocurrencies will be difficult, despite the growing interest in this new form of money. Even so, a weighted portfolio which only encompasses the world’s leading cryptocurrencies will undoubtedly attract some positive attention from this point forward. Coinbase is likely to face some stiff competition in this regard, which can only be considered to be a good thing.
While the new Coinbase Index Fund project should be commended, there is always a question as to whether or not custodial services will work. More specifically, cryptocurrency is all about putting people in control of their own money at all times, although investment ventures like this one clearly do the exact opposite. With that being said, this new venture will definitely appeal to a lot of investors.
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