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Coinbase Index Fund

blog.coinbase.com

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Re: Coinbase Index Fund

#301

Post by evrydayhustling »

sleepychu wrote: post #250
evrydayhustling wrote: post #59

Earlier quoted context omitted.

Yes, by design! The most traditional way of deciding index weights is by market capitalization: if the world has thus far allocated more to Bitcoin than Ethereum, the index will too. Besides concurring with past "wisdom", this method minimizes management overhead. If Ethereum doubles in price tomorrow, so that by market capitalization it should have similar weight to Bitcoin, the index will already be "in position" b…

I hadn't considered this, why do you ever need to rebalance then?

Price is one of two inputs driving market capitalization - the other being available supply. Since many cryptocurrencies continuously issue new supply, relative supply can change over time. The Coinbase Index rebalances once a year to track this change.

The other cause of rebalance will be if they add members to the index, which would also upset all the ratios.

Re: Coinbase Index Fund

#302

Post by optimuspaul »

elif wrote: post #295
rocqua wrote: post #268

Earlier quoted context omitted.

Isn't LTC the main coin that uses a lightning network ATM? Because if so, it is still a decent choice if you want a lightning network. BTC is moving in that direction, but it might still not go there.

LTC was just surpassed by BCH in transaction volume. It's creator peaced out two months ago. Dunno if an unused payment channel means more than stuff like that.

peaced out? Like dead, unconscious, or just left?

(is it just me or is HN becoming more unreadable due to increased usage of slang?)

Re: Coinbase Index Fund

#303

Post by cableshaft »

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…

This is a really clever idea, but as someone who's trying to stay as legal as I can with reporting my crypto transactions for taxes, this sounds like it could potentially be a nightmare to report (or possibly to pay taxes on), especially with the recent GOP addition to the tax reform law that made every cryptocurrency transaction, even a trade from currency to currency, a taxable event.

I really wish I could just freely use this as a tool for investment, but the laws seem pretty draconian right now, and not reflective of the open and experimental nature of this space.

Once you get this up and going, consider some reporting tools to help keep track of the transactions, so people can use it for both personal and legal purposes.

Re: Coinbase Index Fund

#304

Post by sAbakumoff »

sAbakumoff wrote: post #240
haggenballs wrote: post #180

Earlier quoted context omitted.

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…

Looks cool, can't wait for the early access!

for god sake, why it has been downvoted?

Re: Coinbase Index Fund

#305

Post by loeg »

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

I'm not sure it's the scale that's dishonest so much as the implication that the historical results might possibly predict future returns.

Re: Coinbase Index Fund

#307

Post by loeg »

pembrook wrote: post #203
ram_rar wrote: post #4

Mix it up with Vanguard and I ll move all my funds from Betterment to Coinbase.

It's comments like these that make me think retail investors should never have been allowed to be in charge of their own retirement money.

Oy. I appreciate that the grandparent commenter expresses an idiotic and reckless sentiment, but as a reasonable retail investor myself (primarily in sane index funds like VTI and VXUS), I don't exactly want to cede control of my investments to either a private pension manager nor the government.

Re: Coinbase Index Fund

#310

Post by splintercell »

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…

How are you planning to deal with the tax implications which arises due to buying and selling of coins?

There is a certain benefit of using coinbase's (or any) crypto fund where you don't actually have to own the coins, and that is not having to deal with the tax nightmare situation that creates.

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