Index-Fund will be Formally Closed
A source close to the information reported the fund will be formally closed as it failed to attract the investors it had hope and hence raised fewer funds.
The total number of index providers has grown despite the slump of the crypto market as a whole with top players like Mike Novogratz’s Galaxy Digital and Abra’s Bitwise Asset Management. Since Coinbase’s fund is closing down, it could indicate that the market is consolidating and the appetite for exposure of the cryptocurrency market has reduced.
A Coinbase spokesperson confirmed the shut down of the fund and directed to the recently launched ‘Coinbase Bundle’ saying,
Coinbase has decided to shut down Coinbase Index Fund. We will focus on providing diversified exposure to all investors through Coinbase Bundle.
Coinbase Bundle will focus on a wide variety of investors and not just accredited investors. And the starting fund will be $25 instead of the earlier fund’s $25,000.
The spokesperson concluded,
We’ve decided to refocus the resources devoted to managing the Coinbase Index Fund to other parts of the business.
Moreover, this step by Coinbase isn’t the first of its kind. Circle also launched Circle Invest allowing users to purchase 11 different tokens with a minimum of $10.
Coinbase has been the poster child of the cryptocurrency exchange markets in the U.S. and has been very active. This announcement of Coinbase comes just after it announced the addition of Ox Protocol Token (ZRX).
Coinbase Crypto Exchange
There are over 20 million users on Coinbase. However, a user activity slashes by 80 percent ever since the Bitcoin price crash- reports Bloomberg.
Adam White recently bid Coinbase goodbye, and the CEO of Instinet, Jonathan Kellner will be taking Adam White’s responsibilities as the Managing Director. Coinbase has been planning to woo investors and has had more employees come aboard. The investment of $500 million by Tiger Global also falls in line with this speculation, which values Coinbase at $8 billion.
Are you on Coinbase? Will Coinbase Bundle be successful?
You can read more news about Coinbase here:
- Coinbase Revamps Policy to List New Cryptocurrencies
- Caspian Brings Trading Tools to Coinbase Platforms
Image Credit- forbes, blocktempo.