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Coinbase Introduces New Investment Plan: Now Trade Bitcoins Like Dow Jones Index


(Last Updated On: March 8, 2018 10:49 am)

Coinbase, the US-based digital currency exchange is launching a new way of investing in cryptocurrencies. Those who are finding it difficult to invest in cryptocurrencies but are more than willing to be a part of $450 billion markets have cryptocurrency index fund to invest.

“It’s an easy way to get exposure to the crypto assets that we offer on our exchange,” says Coinbase President and COO Asiff Hirji. This precisely means that the investors will have access to all the bitcoin assets which are listed on GDAX, the currency’s exchange. The market capitalization would be the yardstick in order to ascertain the value of the investments.

For now, only US citizens are allowed to invest in this fund, which will reflect the cryptocurrency trends just like how 30 stocks on Dow Jones reflects the economic trends of the country.

At present, Coinbase allowed its traders to trade in Bitcoin, Bitcoin Cash, Litecoin and Ethereum but bars transaction in Ripple. It is interpreted that the company is taking baby steps in introducing the new currency to ensure only sustainable currency can survive on the exchange.

“There has been a lot of discomfort from the SEC around a lot of these ICO-based tokens,” Hirji said. “We’re not going to be the ones operating in the black.” Grayscale, the Coinbase competitor also has launched new investment product, which has 1 year of lock-in period.

Unlike Grayscale product, Coinbase allows its investors to withdraw or pull out every three months. While Grayscale has minimum credit threshold of $10,000, Coinbase has no such threshold and investors can invest as low or high as they want. The idea is to offer more tailored investment option to the needs of the individuals.

However, it is understood that this business will not be regularized and Coinbase may have to register itself with the US Security and Exchange Commission eventually.

At the same time, it appears that Coinbase is set to start a new trend. In order to expand the base, the company has recently pouched on the LinkedIn executive as M&A boss. This shows the confidence of the company in its products and future of the cryptocurrencies.

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