Coinbase, one of the world's top cryptocurrency exchanges, is launching an index fund that tracks four of the biggest virtual currencies on the market, the platform said in a blog post.
The Coinbase Index Fund will give investors access to the digital currencies listed on GDAX, the exchange operated by Coinbase. It will be weighted by market capitalization and will adjust when new coins are added to the exchange.
“Index funds have changed the way that many people think about investing,” said Reuben Bramanathan, a product manager at Coinbase.
“By providing diversified exposure to a broad range of assets, index funds enable investors to track the performance of an entire asset class, rather than having to select individual assets,” he added.
Access to the Coinbase index fund will be limited to U.S.-based accredited investors, meaning those who are worth more than $1 million or who earn more than $200,000 a year.
Coinbase said it’s “working on launching more funds which are available to all investors and cover a broader range of digital assets.”
The breakdown of the fund is as follows: 62% Bitcoin (Bitcoin), 27% Ethereum (ETH/USD), 7% Bitcoin Cash (Bitcoin.Cash), and 4% Litecoin (LTC/USD). Investors can start signing up for the product, but it won't be live for a couple of months.