thecryptobasic.com
Leading US-based crypto exchange Coinbase has added Dogecoin, XRP, Shiba Inu, and 47 other crypto assets to its new Coinbase 50 index fund.
Coinbase has launched a crypto investment tool that tracks the performance of the top fifty crypto assets by market cap, excluding stablecoin. In a Tuesday release, the exchange noted that the index fund would provide alternative means to gain exposure to a wide array of digital assets through one fund.
The largest US exchange launched the fund in collaboration with index development firm MarketVector. The symbiotic partnership will leverage Coinbase’s strong market presence and MarketVector’s index experience to foster the adoption of the newly launched crypto fund.
Coinbase Launches Own Index Fund
Termed the Coinbase 50 or COIN50, the index fund benchmarks assets like Bitcoin, Ethereum, Solana, XRP, Dogecoin, and Shiba Inu. Notably, each of the cryptocurrencies weighs differently on the fund, as Coinbase proportioned the assets based on their market capitalization.
For context, Bitcoin weighs 51.70%, Ethereum 25.99%, and Solana 6.5%. Other notable assets like Dogecoin, XRP, and Shiba Inu account for 3.60%, 2.52%, and 1.00% of the index fund, respectively.
Notably, Coinbase will update the crypto asset weight in the fund depending on their performance. The exchange will also review the assets benchmarked by the fund as they move in the cryptocurrency market cap rankings.
Meanwhile, Coinabse’s head of product, Greg Tusar, noted that, besides generating revenue, the exchange intends to make COIN50 trading a “media play.” He stressed that Coinbase aims to achieve crypto branding through the index fund.
According to him, Coinbase wants the fund to mirror the crypto market’s performance, actively representing the sector. The Coinbase exec implied that COIN50 would be to cryptocurrency what the Polymarket odds were to market observers during the US presidential election.
Restricted Participation
In the meantime, only users outside the US, UK, and Canada can access the COIN50 index fund. This is due to the regulatory restrictions for crypto-related products in these countries.
Furthermore, institutional traders can access COIN50 through the Coinbase International exchange, while retailers can trade the fund on Coinbase Advanced. The Coinbase 50 index fund also provides up to 20x leverage through its perpetual futures contract.
Meanwhile, the launch came a few months after Coinbase debuted wrapped Bitcoin on the Basne network. In September, the exchange announced the launch of Coinbase Wrapped Bitcoin (cBTC), an ERC token worth 1 BTC.