Rumor: Coinbase Ending Cryptocurrency Index Fund Due To Lack of Interest
Earlier this year, Coinbase launched a cryptocurrency index fund for professional investors to “gain exposure to cryptocurrency as an asset class.” However, it is rumored that the fund may be closing down due to lack of institutional interest, according to a source via The Block.
“A person familiar with the matter” reported that the fund couldn’t gather the proper number of clients, resulting in less money than Coinbase expected. This is unfortunate, as, before the launch of the platform, Coinbase told Bloomberg that it was “seeing strong demand from institutional and high-net-worth individuals.”
However, despite the cryptocurrency market shrinking, the amount of index providers has gotten higher this year. Some firms that have recently entered the market include Abra, Bitwise Asset Management, and Galaxy Digital from Mike Novogratz. This data correlates with the recent claims that the cryptocurrency market is “imploding.”
Launching in September, Coinbase is now focusing on its “Coinbase Bundle.” The service allows users to one-click buy a bundle of different cryptocurrencies listed on the Coinbase exchange at a minimum of $25 a basket. However, this bundle isn’t an entirely unique offering, as services like Circle Invest already provide similar options, but with a lower minimum of $10. That said, Coinbase is the largest cryptocurrency exchange in the United States, and packages are a great way to push mainstream adoption.
Regardless, the Coinbase platform will likely be fine. The team there has shown great care for its user base, such as how it’s handling Bitcoin’s scalability problems or in their over-the-top security practices. As of late, Coinbase is waiting for a regulatory license approval in Japan despite their “crypto crackdown.”
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