As a few others here seem to have hinted at. Although this seems to be not only an interesting idea and also a natural space for Coinbase it appears to be limited in a number of different ways. Has anyone had any other experience with other crypto style index funds such as Crypto20? If so any thoughts, advice or recommendations would be most welcome.
Coinbase Index Fund
11–20 of 346 posts
Re: Coinbase Index Fund
#12Seems dishonest to not use a linear scale on this graph: https://am.coinbase.com/index Also, the minimum investment and management fee found here don't look too appealing: Minimum Investment: $10,000 2% annual management fee https://am.coinbase.com/#invest
That 2% figure seems high. I know transaction costs in cryptocurrencies tend to be high by financial standards. Maybe that accounts for it.
Also maybe by being one of the first to offer such a thing, they can charge higher management fees.
Re: Coinbase Index Fund
#13Interesting. The fund creates another potential source of revenue for them and at the same time, the more people that invest in it, the higher it's likely to go. Why would anyone choose to invest in a fund that is basically the same as investing in the 4 currencies they currently support directly (without fees or limitations on trading)?
Automatic and cheap balancing. Its a great business for coinbase: if it had plenty of investors, then they have a very definite measure on what to ask coin makers before putting their coin on their exchange. Figure they can ask 10% of the outstanding tokens in exchange for the legitimacy that will pump the coin sky high.
> Automatic and cheap balancing
For someone unknown definition of “balancing.” (Rebalancing and re-weighting or re-constituting are different things.)
Re: Coinbase Index Fund
#14Interesting. The fund creates another potential source of revenue for them and at the same time, the more people that invest in it, the higher it's likely to go. Why would anyone choose to invest in a fund that is basically the same as investing in the 4 currencies they currently support directly (without fees or limitations on trading)?
If you bought the 4 currencies yourself, you'd have to pay capital gains taxes each time you rebalance.
Re: Coinbase Index Fund
#15I don't see the value here. I can simply buy it on Gdax weighted by market capitalization and save the 2% annual management fees.
Re: Coinbase Index Fund
#16Re: Coinbase Index Fund
#17Seems dishonest to not use a linear scale on this graph: https://am.coinbase.com/index Also, the minimum investment and management fee found here don't look too appealing: Minimum Investment: $10,000 2% annual management fee https://am.coinbase.com/#invest
You forget it's automated. I think plenty of HNWIs are willing to pay 2% management fee to be able to invest in a diversified crypto index fund.
For fellow non-native speakers: HNWI = High Net-Worth Individual
Re: Coinbase Index Fund
#18Kudos to Coinbase for launching this but a 2% fee and the fact that Coinbase is far from being trustworthy in my book I am going to wait for when/if a company like Vanguard starts such a fund.
Re: Coinbase Index Fund
#19Re: Coinbase Index Fund
#20Seems dishonest to not use a linear scale on this graph: https://am.coinbase.com/index Also, the minimum investment and management fee found here don't look too appealing: Minimum Investment: $10,000 2% annual management fee https://am.coinbase.com/#invest
That 2% figure seems high. I know transaction costs in cryptocurrencies tend to be high by financial standards. Maybe that accounts for it. Also maybe by being one of the first to offer such a thing, they can charge higher management fees.
> transaction costs in cryptocurrencies tend to be high by financial standards
Well if you own the exchange the effective transaction costs are 0.