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Coinbase has launched a new index called COIN50, which represents the top 50 cryptocurrencies listed on the exchange and designed for investors. The COIN50 index stands out by offering continuous futures trading with leverage of up to 20x.
According to Coinbase’s announcement on Tuesday, the COIN50 index includes the top 50 crypto assets listed on the platform that meet certain participation criteria. This launch comes after Bitcoin’s price neared $90,000, influenced by the U.S. election results.
David Duong, Coinbase’s Head of Research, highlighted the growth potential of the crypto market. Duong noted that the total crypto market cap is currently around $3 trillion, which represents only 3% of the $101 trillion global stock market. He emphasized that the COIN50 index aims to provide investors with an indicator that captures structural changes in market trends.
Coinbase 50 Index (COIN50)
Coinbase developed the COIN50 index in collaboration with Coinbase Asset Management and Market Vector Indexes. The index ranks assets by market cap, with the largest asset limited to 50%. The index distribution is as follows:
– Bitcoin (BTC): 50.3%
– Ethereum (ETH): 27.5%
– Solana (SOL): 6.4%
– Ripple (XRP): 3.1%
– Dogecoin (DOGE): 1.5%
– Other 45 assets: 11.2%
Duong compared the COIN50 index to the early days of the S&P 500, noting that the index represents 80% of the crypto market.
Futures with COIN50
Coinbase has launched the COIN50-PERP futures contract, which allows eligible investors to access the COIN50 index with up to 20x leverage. COIN50-PERP will be available to institutional users on Coinbase International Exchange and to retail users via Coinbase Advanced. The futures contract will only be accessible to users in eligible jurisdictions outside the U.S., U.K., and Canada. Coinbase also mentioned that they are exploring additional ways for investors to access the index.
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