Coinbase Index Fund

Post by marc1 » Wed, Mar 07, 2018, 7:42 AM UTC

haggenballs wrote: post #181

rektlessness wrote: post #136

Earlier quoted context omitted.

I suggest those interested in Crypto Index Traded Funds to look into Crypto20. This fund provides a way to track the performance of the crypto markets as a whole by holding a single crypto asset. "Crypto20 is a tokenized, closed-end index fund (CEF) which passively tracks the top twenty cryptocurrency assets by market capitalisation. All profits are reinvested into the fund." Here is the link to the whitepaper for th…

One thing I really don't like about Crypto20 is this: "The liquidation option offers a price floor protection – this ensures the price never drops below that of the underlying assets because of market manipulation. Prices are, however, free to increase as speculative value is created by the high demand for a low-cost, diversified and automated cryptocurrency portfolio that can be held as a single token" A unit of Cry…

Post by argonaut » Wed, Mar 07, 2018, 7:47 AM UTC

dmichulke wrote: post #242

argonaut wrote: post #239

This is a terrible deal. A 2% annual fee is a hedge-fund-esque fee. For 2% I'd expect an actively managed fund that gets in on ICO presales, carefully vets teams/technologies behind new coins and gets in early, has a strategy for hedging risk, etc. etc. Instead you get a passively managed fund with FOUR assets that are all tightly correlated with each other (they all crash at the same time), that is only rebalanced o…

Just to elaborate: On a yearly basis the only two coins among the top coins that correlate less with the coins listed in the index are Ripple and Stellar. Source: http://cryptoport.net/blog/diversification-i.html (my blog, just scroll down to the correlation matrices) EDIT: "don't correlate closely" -> "correlate less"

Post by bufferoverflow » Wed, Mar 07, 2018, 7:53 AM UTC

arcticbull wrote: post #104

bufferoverflow wrote: post #60

Earlier quoted context omitted.

This whole regulation is unneeded. You can bring your money to a casino and put it all on zero. Or buy a thousand lottery tickets. But investing in risky businesses needs to be walled off to the wealthy. What we really need is the real consequences for fraud / false financial claims.

At the casino your risks are known, and well-defined. In blackjack with basic strategy your expected value is, what, 49%? Craps, it's similar. Just look it up. Nobody at the table playing, or even running the show, can manipulate the outcome except by changing the parameters of the game as posted in the (I assume) regulated odds boards. Investing in an unregulated market is absolutely nothing like that. Your outcome…

Post by bufferoverflow » Wed, Mar 07, 2018, 7:58 AM UTC

tomkarlo wrote: post #105

bufferoverflow wrote: post #60

Earlier quoted context omitted.

This whole regulation is unneeded. You can bring your money to a casino and put it all on zero. Or buy a thousand lottery tickets. But investing in risky businesses needs to be walled off to the wealthy. What we really need is the real consequences for fraud / false financial claims.

Casinos (and lotteries) are subject to heavy regulation, including oversight on the odds of the games they offer. The problem with back-end enforcement (and those laws do exist) is that it doesn't remove the incentive to try issuing a scam-ish security and hope you will evade prosecution, and the damage done can take years to unwind, if it's even possible at all. This is why there are regulations on public offerings…

Post by mkbkn » Wed, Mar 07, 2018, 8:11 AM UTC

haggenballs wrote: post #180

justinalanbass wrote: post #61

I have attempted to duplicate this index fund manually by purchasing the top 25 cryptocurrencies (market-cap weighted) over the past year or so. I'll say that it was hardly worth the enormous work involved, and these index funds cannot come soon enough to non-accredited investors. In some cases it's not possible to do perfectly alone: NEO has a minimum unit of 1 coin, and so if you wanted it to not be overweighted, y…

I had the same problems with re-balancing my own portfolio and ended up creating a trading bot that automatically diversifies my investment portfolio across the top 20 coins by market cap (10% capped). It is heavily inspired by the crypto20 whitepaper. For anyone that is interested, you can find the project here: www.hodlbot.io I'm about 1-2 weeks from the MVP launch. Only the top 20 coins by market cap fund will be…