The Bitcoin exchange Coinbase has launched its first-ever index fund, marking the company’s foray into traditional ‘asset management’.
Coinbase is the largest cryptocurrency company in the world and was recently valued at $1.6 billion. Wards evacuated after fire breaks out at hospital in Coventry Now it has formed a subsidiary called Coinbase Asset Management to oversee the new Coinbase Index Fund, product lead Reuben Bramanathan told Reuters.
The fund will let people invest in crypto-assets listed on Coinbase’s exchange, which is called GDAX. Whenever a new cryptocurrency is listed, it will be automatically added to the fund.
‘We’re seeing strong demand from our customers and the market generally for a passive investment management product,’ Bramanathan said. He said the investment product has long been in the company’s roadmap, ‘but we’re finally seeing demand so that’s why we’re just launching now’. For now, the fund will only be available to US resident accredited investors. Bramanathan said Coinbase is working on launching more funds that are accessible to investors and cover a broader range of digital assets. The new fund will track the Coinbase Index to be launched as well, which is a benchmark of the performance of all assets listed on Coinbase. Digital currencies listed on Coinbase are Bitcoin, Bitcoin cash, Ethereum and Litecoin. Every time a new asset is listed, the index will automatically be rebalanced to include it, Bramanathan said.