It seems that Coinbase have two major goals at the moment. First of all, they want to list lots of new cryptocurrencies. Secondly, they want to make it easier for large institutions to invest in cryptocurrency. I guess they realise that this is where the money is at, they aren’t far wrong either.
Coinbase need to expand their portfolio, yes, they have added a listing for Ethereum Classic, but in terms of altcoins this is not enough. In order to bring more customers in, they need to offer a bigger range of products, it’s the same with any customer focused business right?
Institutional investment is where it gets interesting though. As it stands, personal investment is long winded enough, therefore Coinbase realise that in order to encourage big companies to use their service, they need to make institutional investment as easy and as cost/time effective as possible.
In their most recent announcement, Coinbase have moved one step closer towards securing institutional interest, in reducing their annual management fee for the Coinbase Index Fund from 2%, to 1%. According to their official announcement:
“We’re pleased to announce that we are reducing the annual management fee for Coinbase Index Fund from 2% to 1% for all new and existing investors. We’re reducing our fee in order to attract investors who are familiar with lower-fee index funds in other asset classes. This will help introduce a new category of institutional investors into the cryptocurrency space.”
“Coinbase Index Fund gives investors exposure to all assets listed by Coinbase, weighted by market capitalization. At this stage, the fund is open to US residents who are accredited investors. The minimum investment is $250,000 and the maximum is $20 million.”
Within this latest move, Ethereum Classic is also set to be added to the Coinbase Index fund, with the prospect of adding five new cryptocurrencies in the future too:
“Coinbase Index Fund has also been rebalanced to include Ethereum Classic, following its listing on Coinbase this week. All investors now have exposure to Ethereum Classic. The fund will continue to add new assets when they are listed on Coinbase. Coinbase is currently exploring five more assets for listing.”
See more for yourself, here.