An Announcement by Coinbase was widely anticipated yesterday. The announcement turned out to be the launch of the index fund by Coinbase.
Announcement of Index Fund by CEO:
Asiff Hirji, CEO of Coinbase, clearly stated that with the help of this index fund, investors will be able to invest more easily in the cryptocurrency assets which are present on the platform. Currently, the cryptocurrency assets which are present on the platform include Ethereum, Litecoin, Bitcoin cash, and Bitcoin.
He further stated that there is a strong demand for cryptocurrency index fund by most of the cryptocurrency investors. Also, he clearly stated that the fund will be pretty easy to use.
According to him, the cryptocurrency trading volume on this platform increased by almost 30 times in the year 2017. He also accepted that there were quite a few glitches on this platform in the year 2017. However, he was quick to add that the support capability of the platform increased by almost 600 times.
The accepted the fact that support is not the best and they will consistently work in order to improve the customer support which they provide to their users.
Currently, Coinbase is only accepting users which are accredited. This comes on the heels of SEC warning Coinbase.
According to the CEO, in order to provide asset management solutions, a new company by the name of Coinable will be created. All of the cryptocurrency asset management services will be provided by this company. It will also buy the cryptocurrency assets on behalf of the customers. Also, since it is an index fund, it will closely mimic the overall market cap of the cryptocurrency universe.
Coinbase is currently worth around $ 1.6 million. This is the 1st attempt by the company to step into the asset management space. Most of the other cryptocurrency exchanges will also be closely monitoring Coinbase in order to figure out whether they are actually successful in providing asset management solutions are not. For now, however, the demand for such solutions exist in most of the cryptocurrency investors all over the world. That is why this space is certainly growing pretty rapidly. It remains to be seen how much traction, the cryptocurrency index fund by Coinbase is able to get. Already, they have quite a few investors and traders using their platform. That is why they will be able to tap into their demographic audience in order to provide and get investors for the cryptocurrency index fund.