Coinbase is now allowing accredited investors with deeper pockets the ability to utilize the Coinbase Index Fund, which offers exposure to every asset listed on the popular exchange.
The previously announced Coinbase Index Fund has officially opened for investments of $250,000 to $20M.
Reuben Bramanathan, Product Lead of Coinbase Asset Management, stated in an official announcement:We’ve seen overwhelming interest from investors since we announced the fund earlier this year. At this stage, we have opened the fund to those who wish to invest $250,000 to $20M.
The fund is geared towards institutional investors and those with a lot of money to invest and offers investors exposure to each and every asset listed on Coinbase’s exchange. The cryptocurrencies are weighted by market capitalization, which aims to ensure effective diversification in the event one particular cryptocurrency underperforms.
The Coinbase Index Fund will also include Ethereum Classic, after the announcement earlier this week that the popular San Francisco-based cryptocurrency company would begin supporting the cryptocurrency in the coming months.
Currently, only accredited investors residing in the United States are eligible to utilize the Coinbase Index Fund. However, Coinbase plans to broaden its horizons with other offerings for currently ineligible investors, stating:We’re working on launching more funds which are accessible to all investors and cover a broader range of digital assets.
BAD TIMING (OR NOT)
The launch of the Coinbase Index Fund comes at a time when many retail investors are being shaken out of the volatile bear market.
Each and every asset currently listed on Coinbase is undergoing a rather steep ‘correction.’ Bitcoin (BTC) is currently down, at the time of this writing, 14 percent over the last week. Ethereum (ETH), meanwhile, is down 21 percent, while Bitcoin Cash (BCH) and Litecoin (LTC) are down 25 percent and 20 percent respectively.
There was a time when such an announcement from Coinbase would’ve sent prices skyrocketing — but those days appear to be well and truly over.
That said, institutional investors and those eligible to take advantage of the Coinbase Index Fund might soon find the prices just to their liking.
Coinbase Trading Drops 83% Since January, Offshore Cryptocurrency Exchanges Make Gains
Cryptocurrency exchange giant Coinbase might, as market research firm Bernstein recently said, be on the cusp of assembling an “unassailable” market share in the U.S., but that doesn’t mean that the San Francisco-based firm isn’t struggling to maintain consumer activity during the current downturn.
Citing data from CoinApi, cryptoasset research firm Diar reports that USD-denominated cryptocurrency trading has plunged in 2018, even as large cryptocurrency-to-cryptocurrency exchanges headquartered in other parts of the world have seen stable or even rising volumes.
According to the publication, Coinbase — the most well-known cryptocurrency trading platform in the U.S. — has seen volumes plunge by 83 percent from their all-time high in January. In July, Coinbase processed an estimated $3.9 billion worth of trades, down from a peak of nearly $21 billion. Bitstamp and Kraken, both of whom offer USD trading pairs, have also experienced significant declines, though they have been less-pronounced than those seen on Coinbase.
Binance, the world’s largest order-book cryptocurrency exchange, has also seen a moderate decline in volumes in its BTC, ETH, BCH, and LTC markets (the four cryptocurrencies that have been available on Coinbase throughout 2018), from $17.5 billion in February to a low of $9.4 billion in June. However, Binance volume jumped 21 percent the next month, reaching $11.3 billion in July.
Meanwhile, OKEx, generally the second-largest cryptocurrency exchange, attracted a surge in trading volume among these four-large cap coins between June and July, from to $5.7 billion from $2.9 billion. That not only signifies a month-over-month increase of 97 percent but also, Diar reports, represents a new monthly record for OKEx.
That’s particularly notable since volume on Coinbase and Bitstamp decreased between June and July, albeit slightly. Incidentally, neither Coinbase nor Bitstamp supports USD-pegged stablecoin Tether(USDT), while both OKEx and Binance do. Tether, whose solvency and credibility have been the subject of much debate within the cryptocurrency community, has issued hundreds of millions of dollars worth of new tokens over the past few weeks, which could help explain the discrepancy in volume between exchanges that support USDT and those that do not.
Additionally, both Binance and OKEx, as CCN reported, are planning to set up shop in Malta after pro-industry regulations go into effect in the self-described “Blockchain Island” later this year. Binance, which heretofore has only offered crypto-to-crypto trading, has also unveiled plans to partner with a Liechtenstein-based company to begin offering its first fiat trading pairs.
Coinbase Leads Charge to Swap Fear for Trust in Bitcoin and Crypto Space
Coinbase is working at break speed to challenge perceptions that Bitcoin and crypto-related businesses have major pain points regarding trust and security. As part of its strategy to build an open financial system for massive mainstream adoption, the San Francisco-based cryptocurrency exchange unveiled three major steps this week.
- Coinbase acquisition of San Francisco-based startup Distributed Systems Inc.
- Coinbase patent filing for a new Bitcoin payment portal
- Coinbase re-launch of the Coinbase Wallet with new integration of the open-source DApp Toshi
On Wednesday, Coinbase acquired Distributed Systems, founded in 2015, to help build a digital economy that incorporates solid solutions for validating and verifying identity. The move is meant to address identity theft and redundant verifications.
With SIM card hacking, online identity theft and fears about compromised private and personal digital data, Coinbase is trying to tackle a major obstacle for crypto adoption.
The company believes “decentralized identity systems represent a transformative shift in our relationship with technology.”
By handing out Social Security numbers to banking agents, government agents, prospective landlords and employers, consumers invite risk, fear of fraud and identity theft.
The collaboration between Coinbase and Distributed Systems is designed to change that dynamic. “A decentralized identity will let you prove that you own an identity, or that you have a relationship with the Social Security Administration, without making a copy of that identity,” writes B Byrne, project manager for Coinbase ’s Identity team.
The real key is to allow the blockchain to verify a person’s identity without any individual having to reveal their SSN or other sensitive information.
“Blockchain technology that powers cryptocurrencies offers a new way to let us all be ‘verified’ everywhere we go on the internet, feeling safer about our interactions with others and opening the door to the experiences that require trust,” Byrne writes.
Join us on Telegram
Also on Wednesday, Coinbase announced that the open-source decentralized app Toshi is becoming Coinbase Wallet, a standalone wallet app. Toshi was developed by Coinbase about a year ago. If you’re already using Toshi, the company says it will automatically upgrade to the Coinbase Wallet shortly. It allows users to store their private keys.
“We believe that the applications of the future will be built on a decentralized internet (the blockchain). Everyone will own a crypto wallet that allows them to access decentralized applications (dapps) and that wallet will be their gateway to the open financial system,” writesCoinbase developer Siddharth Coelho-Prabhu.
The Coinbase Wallet suite of features allows users to
- Manage ETH and all your ERC20 tokens (with BTC, BCH and LTC in the near future)
- Receive airdrops and ICO tokens
- Buy and store crypto collectibles (unique and unreplicable) and use them in games, or trade them on marketplaces
- Send payments to anyone anywhere, without geographical borders or fees
- Access leading decentralized exchanges and relayers to buy and sell tokens
- Explore the full universe of third party DApps that enable everything from taking out a loan or lending to others on the blockchain to earning crypto by answering questions, performing services, or completing tasks
Coinbase has also recently filed for a patent to make Bitcoin payments more secure. Filed on August 14, the patent’s technology provides a solution for maintaining security over private keys while allowing consumers to use their Bitcoin wallets to pay merchants.
The tech would allow a checkout transaction to be “frozen” through a “key ceremony” that has master key functions — encrypting private keys and transaction signing. While users can spend crypto, they’ll also have the ability to stop payments.
“At any point in time after the master key is loaded, the system can be frozen. The system can be unfrozen after it has been frozen using keys from the key ceremony. The checkout process can be carried out when the system is frozen and when the system is unfrozen. The payment process can only be carried out when the system is unfrozen.”
The patent also details the development of an API, through which the system can be deployed across the internet for e-commerce.
Coinbase Patent Shows Exchange Is Refining Security for Bitcoin Payments
A patent by U.S. crypto exchange and wallet provider Coinbase proposes a new mechanism for further securing Bitcoin (BTC) payments, according to a filing published by the U.S. Patent and Trademark Office (USPTO) August 14.
The filing claims that existing systems do not adequately address concerns “that the private keys of [users’] Bitcoin addresses may be stolen from their wallets,” when making payments, and in particular when checking out on a merchant page.
Coinbase is therefore applying to patent a so-called “key ceremony” solution, which would involve encrypting private user passphrases into “masterkey key shares.” These shares are then combined into an “operational masterkey” that would be used to generate an encrypted private key upon checkout and then a decrypted private key when signing transactions.
The proposed system would also allow for administrators to deploy a “freeze logic” to suspend all payment processes in case of a security alert.
The filing also proposes a method of application programming interface (API) key generation in order to provide an extra layer of security when the system is used across the web. As the patent outlines, the API would be stored in two parts, one on the Coinbase web service, and the other on the user/host server. Transactions would be confirmed “only if the API key received from the web server matches the API key stored by the service.”
As Coinbase looks to bolster security within crypto transactions, MasterCard has recently been pursuing a patent that would use blockchain to secure consumer payment credentials at the point of sale.