Coinbase Announces Cryptocurrency-Focused Index Fund

In an interview with CNBC on its "Fast Money" segment, Coinbase's President and COO Asiff Hirji said the digital-currency platform would launch a cryptocurrency-focused index fund. Details are scarce but Hirji said it will be intended to give retail investors broad exposure to virtual currencies, and would be targeted to accredited investors on Day 1. He also said the index fund would be market-cap weighted.

UPDATE: Coinbase has since issued a blog post detailing the announcement. They are also introducing Coinbase Index, which "is a measure of the financial performance of all assets listed on GDAX, weighted by their market capitalization."

Re:

[whipslash]

They paid 50 kajillion nothingburger coins

cool another scam

[Anonymous Coward]

and let me guess, they will use tether as an asset to increase valuation lol

The crypto version of a default credit swap

[humankind]

This is basically, the crypto version of a default credit swap. Take a bunch of securities that have no real assets backing them up, securitize them into a meta-stock, and sell it so basically just in case there was a way someone could perform due diligence, now it's moot.

Re:

[Anonymous Coward]

This is basically, the crypto version of a default credit swap. Take a bunch of securities that have no real assets backing them up, securitize them into a meta-stock, and sell it so basically just in case there was a way someone could perform due diligence, now it's moot.

This is basically the cryptocurrency (not "crypto") version of a collateralized debt obligation [wikipedia.org] (CDO), not a credit default swap.

A credit default swap [wikipedia.org] (CDS) is basically insurance that you buy when you feel your CDO's aren't actually backed by something of value (like the early 2000's real estate market or the current cryptocurrency market).

Re:

[rtb61]

Nope this is a mass marketing exercise. As the delusion of an unbacked by anything but marketing currency collapses so new marketing engine is created ie a unbacked marketing and public relations currency exchange for worthless unbacked currencies. Straight up fact, a currency is only worth what backs it be that an entire country or as is developing source able energy. A currency backed by nothing is worth nothing, it's value is a measure of marketing, gullibility and greed, so more a psychological measure

Marketing ploy

[war4peace]

It's just another marketing gimmick allowing them to ask even more money for listing an altcoin on their exchange.

Hopefully not the new Bit

[Kokobaby39]

Recall that Bitcoin slammed the entire stock index about three weeks ago. They made it big, but the index severely slid. As the Bit went to collect through the IRS, I went to Bite the coin. They couldn't get anything out of me with that. When the IRS is the dimp laid mint, the collections went far too heavily, and (very quickly) it led to people selling out. Hopefully Gustav is rolling in his grave right now. Probably a dead Kennedy.

Tulips

[emaname]

Cryptocurrencies smell like tulips.

Re:

[mysidia]

Cryptocurrencies smell like tulips.

No.... Tulips are tangible goods whose flowers people derive a lot of enjoyment from; try again.

Try Your Luck!

[nateman1352]

The casino is still open everyone! Bitcoin's valuation is still swinging by 10% every week, guess which way it goes next week and you too can be a winner! Now, we've put a poker table in your traditional brokerage account, it's never been so convenient to get rich quick!

2% Management Fee??

[bluehenbear]

John Bogle laughs at Coinbaseâ(TM)s notion that this is some sort of index fund.