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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?
Yes, but it would take a lot of work, and would need to be updated whenever market share for a coin changes.
https://am.coinbase.com/documents/cbi-methodology.pdf
Edit: Looks like someone found the same info.
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.
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
Its clearly is about market information. If they were to capture enough funds in the index, they can straight up manipulate the market to choose the coin they want to release: they can charge whatever they want for the next coin release upfront, no cost to them or to the coin seller.
It truly is the era of the pump&dumps
"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.
Earlier quoted context omitted.
> Automatic and cheap balancing For someone unknown definition of “balancing.” (Rebalancing and re-weighting or re-constituting are different things.)
It's only "unknown" if you refuse to read. https://am.coinbase.com/documents/cbi-methodology.pdf Edit: sorry, this came across more aggressive than I meant for it to be!
This seems like a perfect product for them.
But from what I understand.. If $100 in invested into the index fund, $67 of bitcoin is bought, $27 of Ethereum, $7 of Bitcoin Cash, and $4 of Litecoin.
Bitcoin - 62% Ethereum - 27% Bitcoin Cash - 7% Litecoin - 4%
Doesn't that make it so that the market favors incumbents?
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)
"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.
Earlier quoted context omitted.
>I know transaction costs in cryptocurrencies tend to be high by financial standards. What would be a normal transaction cost by financial standards?
Charles Schwab, which is relatively high, charges $8/trade (for unmanaged trades).
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)
[1] https://am.coinbase.com/documents/cbi-methodology.pdf 6.10