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Coinbase used to have an Index Fund weighted by market cap. Launced in 2018[0], it was shut down just a couple of months later[1]. From the articles at the ti
by flixic 6y ago
Coinbase used to have an Index Fund weighted by market cap.
Launced in 2018[0], it was shut down just a couple of months later[1].
From the articles at the time, it seems that the major reason for the shut down was that the market was going down, and all investors saw losses (because it was 2018 in crypto). Maybe they will resurrect this idea now that the market is going up.
[0]: https://blog.coinbase.com/coinbase-index-fund-is-open-for-investment-61217606f1ef https://blog.coinbase.com/coinbase-index-fund-is-open-for-in...
[1]: https://www.coindesk.com/coinbase-confirms-shutdown-of-crypto-index-fund-product https://www.coindesk.com/coinbase-confirms-shutdown-of-crypt...
- StratusBen 6y agoI would imagine because they knew this was coming.
- pmiller2 6y agoThat raises a good question: so, there are crypto indices now. How do you buy the index? In other words, who is going to securitize cryptocurrencies? Until there's a way for someone to login to a brokerage account and buy, say, ticker symbol CRYPT, I don't see where having an index maintained by a company is all that useful.
- modeless 6y agoThere have been many attempts to create ETFs for Bitcoin, most famously https://coin-etf.com/ https://coin-etf.com/. They've all been denied by the SEC so far. But an index like this is likely a step toward SEC acceptance.
- pmiller2 6y agoWhy? Why does having an index matter, if the SEC didn't even like single coin funds?
- modeless 6y agoSome of the SEC's objections to Bitcoin ETFs revolved around the possibility of market manipulation due to the markets being small, unregulated, and overseas. If the index is constructed in a way that resists manipulation by unregulated overseas exchanges, and if it is used as the basis for other products like options in regulated domestic markets that gain significant trading volume, then it could go some way toward addressing the SEC's concerns.
- pmiller2 6y agoI don't understand how you would design an index to reduce manipulation by unregulated entities.