Coinbase is acting swiftly, taking strategic actions that will grow its brand and larger presence in the marketplace. The widely adopted cryptocurrency exchange and wallet provider, Coinbase is in the process of launching the Coinbase Index fund which will be the Dow for cryptocurrencies.
With the expansion of the cryptocurrency world, the offerings and products that come from this industry are prone to grow with time too, and that is what Coinbase, the popular cryptocurrency exchange, just demonstrated.
While making an appearance at CNBC Fast Money, Asiff Hirji, President of Coinbase, announced the exchange’s latest product, and to almost everyone’s surprise, said product went beyond what anyone could have predicted.
It was not a cryptocurrency or a small new feature on the popular Coinbase app itself, rather, a fully-fledged, feature-packed offering on its own.
The coinbase index fund is here
Hirji announced that the U.S. based cryptocurrency exchange will be rolling out a new weighted index fund that would be tailor made for cryptocurrencies.
The closest conventional market counterpart for this offering would be the Dow Jones Industrial Average market index (Dow), which gives an overview of the trading session for 30 large, publicly owned companies within the U.S. in order for interested parties to gauge how the stock market is doing on a day to day basis.
The Dow is one of the most sought after solutions when it comes to the trading industry, and having a product that is based on the same line of operations just goes on to show how far Coinbase is willing to go in order to establish itself as the go to provider not only for cryptocurrency trading, but also when it comes to informational solutions such as this cryptocurrency index fund.
Hirji says the coinbase index fund will be very easy to use
While making the announcement on CNBC, Hirji mentioned that the cryptocurrency index fund will not be a difficult product to use, but will provide customers with an easy overview of the cryptocurrencies that Coinbase currently trades on its exchange.
“It’s a very simple to use, easy way to get exposure to the crypto-assets that we offer on our exchange.” He stated.
It is prudent to note that Coinbase, despite being the primary U.S. exchange for cryptocurrencies, only deals in a select line of cryptocurrencies, namely Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
This particular approach is deliberate as per Hirji, who mentioned that the exchange is exercising caution when it comes to adding any new cryptocurrencies – such as those from recently completed initial coin offerings (ICOs) – to its listing in order to maintain transparency and confidence in its offerings amidst growing concerns from the U.S. Securities and Exchange Commission (SEC).
“There has been a lot of discomfort from the SEC around a lot of these ICO-based tokens,” Hirji stated. “We’re not going to be the ones operating in the black.”
This seems to extend beyond new coins, however, as even some of the most popular of cryptocurrencies are yet to be added to Coinbase. Despite recent rumors, Coinbase has not yet added Ripple to its portfolio of traded cryptocurrencies.
That being said, Hirji clarified that whenever a new coin gets listed, it will be automatically added to the Coinbase Index Fund.
Other entities operating in this realm are players like Grayscale which operates a variety of such funds, the Coinbase Index Fund is important because of the fact that it is very consumer facing, is prominent and is closely watched and used by the general market.