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> Investing in Coinbase Index Fund is the easiest way to get exposure to a broad range get of crypto assets. Much cheaper than 2 and 20% charged by most crypto

by mrep 8y ago

> Investing in Coinbase Index Fund is the easiest way to get exposure to a broad range get of crypto assets. Much cheaper than 2 and 20% charged by most crypto hedge funds, and you get new assets automatically added to the fund as they become available on Coinbase. No rebalancing. [0] From their actual site [1], the fees are 2% a year so barely better than those hedge funds and absolutely atrocious compared to normal index funds. You are effectively being charged 2% fees for them running some scripts every once in a while to re-balance the fund compared to stock market index funds which charge on average around 0.05%. To make matters even worse, their "index" comprises of only 4 coins! That's hardly an index at all. [0]: https://twitter.com/brian_armstrong/status/1006691490272194560?ref_src=twsrc%5Etfw&ref_url=https%3A%2F%2Ftechcrunch.com%2F2018%2F06%2F12%2Fcoinbase-opens-its-crypto-index-fund-to-accredited-u-s-investors%2F https://twitter.com/brian_armstrong/status/10066914902721945... [1]: https://am.coinbase.com/ https://am.coinbase.com/

haggenballs 8y ago
Hey guys, Last time this came up, I shared an algo I made to automatically index across the top 20 coins. Since then I made a hosted version so anyone can use. It works on top of Binance. Plus you can automatically rebalance daily, weekly or monthly. I’ll drop a link here if anyone wants to check it out. Right now, it is free. https://www.hodlbot.io https://www.hodlbot.io
froocpu 8y ago
I think the fact that XRP is missing from their platform is another reason for accredited investors to pass this time. With the number of financial institutions who are already using Ripple's products, or at least have heard of Ripple or what XRP is for, you would assume that a significant number of accredited investors are interested in XRP too. I think most of these accredited investors don't particularly care whether XRP is a "true" cryptocurrency, either.
jeffreyrogers 8y ago
I'm not as sure. The 2% fee is a management fee. There's no performance fee. Stock index funds have low management fees because stocks are very liquid and they have people who do the trade executions for them to not move the market very much. Plus, you get lots of investors so you can charge a lower fee and still cover your fixed costs. Given all that, a 2% fee does not seem like it's fleecing investors, but it does seem possible someone else could do it for less.
tonytxie 8y ago
Hey guys, Last time this came up, I shared an algo I made to automatically index across the top 20 coins. Since then I made a hosted version so anyone can use. It works on top of Binance. Plus you can automatically rebalance daily, weekly or monthly. I’ll drop a link here if anyone wants to check it out. Right now, it is free. https://www.hodlbot.io https://www.hodlbot.io
- tuxxy 8y ago
  I noticed this on your site: > We encrypt all user data on our end with cryptographically secure hash functions. Can you please tell me if you _actually_ encrypt anything? A hashing function is not encryption...
dpc_pw 8y ago
>To make matters even worse, their "index" comprises of only 4 coins! Not to mention that coins are highly correlated, so buying some tiny amount of eg. BTC is enough diversification already.

by mrep 8y ago

haggenballs 8y ago

Hey guys, Last time this came up, I shared an algo I made to automatically index across the top 20 coins. Since then I made a hosted version so anyone can use. It works on top of Binance. Plus you can automatically rebalance daily, weekly or monthly. I’ll drop a link here if anyone wants to check it out. Right now, it is free. https://www.hodlbot.io https://www.hodlbot.io

froocpu 8y ago

I think the fact that XRP is missing from their platform is another reason for accredited investors to pass this time. With the number of financial institutions who are already using Ripple's products, or at least have heard of Ripple or what XRP is for, you would assume that a significant number of accredited investors are interested in XRP too. I think most of these accredited investors don't particularly care whether XRP is a "true" cryptocurrency, either.

jeffreyrogers 8y ago

I'm not as sure. The 2% fee is a management fee. There's no performance fee. Stock index funds have low management fees because stocks are very liquid and they have people who do the trade executions for them to not move the market very much. Plus, you get lots of investors so you can charge a lower fee and still cover your fixed costs. Given all that, a 2% fee does not seem like it's fleecing investors, but it does seem possible someone else could do it for less.

tonytxie 8y ago

tuxxy 8y ago
I noticed this on your site: > We encrypt all user data on our end with cryptographically secure hash functions. Can you please tell me if you _actually_ encrypt anything? A hashing function is not encryption...

dpc_pw 8y ago

>To make matters even worse, their "index" comprises of only 4 coins! Not to mention that coins are highly correlated, so buying some tiny amount of eg. BTC is enough diversification already.