The US-based bitcoin and crypto exchange Coinbase today announced the launching of the Coinbase Index Fund. The aim is to give investors exposure to all digital assets listed on Coinbase’s exchange, GDAX, weighted by market capitalization. If a new asset is listed on the exchange, it will be automatically added to the fund.
At the present time, investing in the Coinbase Index Fund is only available to US accredited investors. Coinbase said they are working on launching more funds which are available to all investors and cover a broader range of digital assets.
Those interested can invest using USD, BTC, ETH, BCH or LTC. The minimum investment size $10,000, and there will be a 2% annual management fee with no additional performance fee.
Ethereum – 27%
Bitcoin Cash – 7%
Litecoin – 4%
Coinbase Index Construction and Methodology
- The constituents of Coinbase Index are all the assets listed on GDAX. The criteria for assets to be listed on GDAX can be found in the GDAX Digital Asset Framework.
- The index level is calculated by dividing the currently combined USD market capitalization of all constituent assets by the market capitalization as at January 1, 2015, the starting date for the Index.
- Coinbase Index is reconstituted each time that a new asset is listed on GDAX.
- Coinbase Index is calculated based on the latest price data from GDAX and the latest total supply of each asset on its blockchain.
Review and Oversight
- The Coinbase Index Committee meets once per quarter and is responsible for reviewing the accuracy and availability of data sources, reviewing calculations of the index level for anomalies and determining whether any changes to the index construction and methodology are required.