Coinbase, the operator of the largest U.S. cryptocurrency exchange, launched an index based on bitcoin and other digital currencies traded on Coinbase. The Coinbase Index Fund debuted Tuesday.
The fund is available only to accredited investors defined as those with an annual income of $200,000 or a net worth of $1 million or more. The minimum investment is $10,000 and the fund has an annual management fee of 2%, according to Coinbase.
“The index fund, which will invest in the same cryptocurrencies traded on Coinbase and its institutional exchange GDAX—currently including Bitcoin, Ethereum, Bitcoin Cash and Litecoin—will be available only to U.S. accredited investors,” reports Fortune.
After bitcoin, the largest cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin. Bitcoin futures debuted on the Cboe in December, followed by a launch on the CME. Nasdaq Inc. is still considering entering the bitcoin futures competition.
“Coinbase is hoping to launch a similar fund available to all investors regardless of wealth, likely structured as an exchange-traded fund (or ETF), pending regulatory approval,” according to Fortune.