n March, Coinbase launched its own cryptocurrency index, naturally based on the coins they offered. Now the San Francisco-based company announces the creation of an investment fund, called the Coinbase Index Fund, reserved for large investors, with a cut from 250,000 to 20 million dollars.
This is a product that can therefore apply to both private investors and institutional operators, such as investment funds in cryptocurrencies or hedge funds.
Of course the cryptocurrencies treated are only those related to the Coinbase platform, so they are:
Bitcoin weighed at 61.5%
Ethereum weighed at 27.2;
Bitcoin Cash, weighed at 8.2%
Litecoin weighed at 3.1%
Currently, Ethereum Classic (ETC) is not supported, although a few days ago it was officially announced its introduction in the bouquet of the exchange, causing the quadrupling of the volumes exchanged in 24 hours. However, its integration can be expected in a short time.
At the moment only accredited investors in the United States are admitted, therefore either private american residents or financial operators . All private investors must have assets of at least one million dollars, with incomes of at least $ 200,000 a year.
This will clearly limit the number of eligible investors but allows the offer to be reserved only for that range of operators who can accept the risk associated with an investment in cryptocurrencies.
The fund will be reviewed several times a year based on the performance of the various cryptocurrencies and security, based on their listing and development prospects.
The managerial work will be paid with an annual fee of 2%, based on the potential profits that can be produced by the fund.
So it is to be presumed that there will be a multi-annual commission compensation mechanism in the event of failure to reach the target.
After Coinbase Index Fund, the company is expected to launch more funds in the future, over a wider range of cryptocurrencies, accessible to all investors, but has not given any specific time period to the transaction.