Coinbase Index Fund Shuts Down as New Bundle Retail Product Emerges vs Targeting Big Investors
Coinbase Shuts Down Fund Aimed At Big Investors As New Retail Product Emerges
It looks like Coinbase is making a shift in its programs to attract new customers. According to information originally featured on The Block Crypto, the crypto exchange is about to shut down its index-fund and will be paying more attention to its new retail offering, which will be called Coinbase Bundle.
The fund was one of the major efforts that Coinbase made to attract big investors but it seems that the fund simply did not attract so much traction after all and not enough people got interested in it. Because of this, the company is now deciding to shift its focus to other new products. The fund was originally announced in March and it offered accredited investors and institutions a chance to invest in cryptos.
According to sources which talked directly to The Block Crypto, a person which was familiar with the inner workings of Coinbase has informed that the company has failed to attract enough customers for the fund, which would make it a flop. However, it is important to remember that the official stance of Coinbase was that everything was alright.
At the time of the launch, Bloomberg News quoted an executive of the company that affirmed that there was a strong demand for the product and that many high net worth individuals were interested in it.
While official information from recent studies show that the number of crypto funds was in the rise in 2018 despite the bear market and the shrinking in prices, it looks like the bear market is finally demanding its toll and the appetite of the investors has diminished if this source is to be believed.
Coinbase Bundle To Be The New Focus
Coinbase’s new bet is that the money is on the retail investors now, which can be seen as the company is shifting its focus to them with its new product, Coinbase Bundle. As you guess by its name, Coinbase Bundle is basically a market in which you are able to buy a bundle of different tokens with a single click.
The product is clearly inspired by Circle Invest, which allows investors to buy bundles of 11 tokens with a minimum lower investment of $10 USD. Coinbase Bundle, on the other hand, will be able to let investors spend as little as $25 USD to buy the packages. While Circle Invest is not necessarily a hit to be so popular that Coinbase decided to copy it, it is a solid product if you look at its 4.7 out of 5.0 score on App Store.
Despite this, it is clear that the major selling point of offering its product is a chance of Coinbase to return to its roots. The company was hailed as the major crypto exchange in the United States by offering a set of products for retail investors, so as the institutional and high net worth investors are not so interested in its products, it seems like a good idea to go back to them.
While the company was able to get a user base of about 20 million people, reports from Bloomberg state that the active users are down on the platform by 80%, mostly due to the cryptocurrency bear market which has no end in sight for the moment.
Institutional investors do not need to be afraid, though, as Coinbase is still interested in them, just not betting so much as it was before. The company has recently announced that Jonathan Kellner, the former CEO of Instinet, will be leading institutional sales and will build space for an over the counter (OTC) market.