Thus far, no exchange traded products related to digital currencies have been approved by U.S. regulators. Derivatives help increase liquidity and improve markets for an asset category by allowing investors to bet on ups and downs of an asset, evening allowing individuals to adopt market-neutral strategies. They are also a key component in the creation of many futures-backed ETFs utilized by a range of investors.
In January, a batch of ETF issuers withdrew plans for bitcoin ETFs, prompting investors to wonder when regulators would approve ETFs based on the digital currency.
Coinbase “declined to provide a timeline for when the company expected to offer the retail fund, or for when exactly the Coinbase Index Fund would actually begin trading, though it is currently accepting applications,” reports Fortune.
The Coinbase Index Fund allocates 62% of its weight to bitcoin and 27% to ethereum. Bitcoin cash and litecoin combine for the remaining 11%.
For more information on the cryptocurrency, visit our Bitcoin category.