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Coinbase Index Fund

blog.coinbase.com

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Re: Coinbase Index Fund

#21

Post by charlesdm »

joncrane wrote: post #12
myroon5 wrote: post #5

Seems 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.

You do know there are hedge funds out there charging 2% on AuM + 20% of profit (or higher) to access crypto, right?

Re: Coinbase Index Fund

#22

Post by ryanlol »

joncrane wrote: post #12
myroon5 wrote: post #5

Seems 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.

>I know transaction costs in cryptocurrencies tend to be high by financial standards.

What would be a normal transaction cost by financial standards?

Re: Coinbase Index Fund

#23

Post by JumpCrisscross »

myroon5 wrote: post #5

Seems 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

Also, quarterly redemptions requiring 30 days’ notice [1].

[1] https://am.coinbase.com/#invest

Re: Coinbase Index Fund

#25

Post by AndrewGaspar »

"Available to US accredited investors."

It seems a little ironic that any Joe Blow with a credit card can buy cryptocurrency, at presumably higher risk since he's managing the assets himself, but he can't invest in this fund.

Re: Coinbase Index Fund

#26

Post by dnautics »

myroon5 wrote: post #5

Seems 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

why is it dishonest to not use a linear scale? When you're investing, you're generally looking for relative-yield-over-timescale, which is appropriately charted as logarithmic.

Re: Coinbase Index Fund

#27

Post by JumpCrisscross »

charlesdm wrote: post #21
joncrane wrote: post #12

Earlier quoted context omitted.

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.

You do know there are hedge funds out there charging 2% on AuM + 20% of profit (or higher) to access crypto, right?

> there are hedge funds out there charging 2% on AuM + 20% of profit (or higher)

For alpha, or the attempted pursuit of it (or a specific risk-return and liquidity profile). The point of index funds is their lower cost.

Re: Coinbase Index Fund

#28

Post by [deleted] »

charlesdm wrote: post #21
joncrane wrote: post #12

Earlier quoted context omitted.

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.

You do know there are hedge funds out there charging 2% on AuM + 20% of profit (or higher) to access crypto, right?

[deleted]

Re: Coinbase Index Fund

#30

Post by paulgb »

machinecontrol wrote: post #24

Couldn't anyone just copy the composition of this fund and buy the same cryptos themselves without paying management fees or being locked in to Coinbase?

The transaction costs would probably add up to more than 2% depending on how accurately you wanted to track the index, plus it sounds like a bunch of work.

(Edit: I'm not saying it's actually worth 2%, which seems excessive)

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