Cryptos can be highly speculative. At this point, price swings can be drastic going up or down. However, it is also true that it digital currencies are getting the attention of institutional investors as well. However, many institutional investors are still waiting for regulatory clarity before getting involved. And this opinion is shared by different experts including Tom Lee.
For this reason, you have businesses such as Coinbase that is now going after licenses working closely with the US Securities and Exchange Commission. Not only that, it Coinbase is also planning to enter the Japanese market by meeting the new rules regarding crypto exchanges.
Coinbase Now Offers Index Funds
In March, Coinbase announced that it is going to launch an index fund specifically for cryptocurrencies. This allows investors to buy baskets of different digital currencies that are traded on Coinbase’s exchange, Coinbase Pro. And now, the fund is open for US accredited investors. You can start your investment with $250,000 to $20 million.
According to the company’s Asset Management Product Lead Reuben Bramanathan, he wrote that the company has seen an “overwhelming interest from investors” from the time the company announced its intention to open an index fund.
There will be a 2{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} annual management fee. And also, it is worth mentioning that there will be four coins namely Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. And according to the announcement of Coinbase recently, there is another cryptocurrency underway which is Ethereum Classic.
As for good news, Coinbase isn’t stopping now. In fact, it is “working on launching more funds which are accessible to all investors and cover a broader range of digital assets”.
Coinbase is currently working to expand its portfolio and products that it offers to its market. The goal is to accommodate institutional investors. In May, the company also announced other major products that are more suited to professional investors. These products include central liquidity pool, secure crypto storage, and a professional-grade trading platform.
Institutional Investors
Though you have the likes of Bill Gates and Warren Buffet that don’t think highly of cryptocurrencies, it is still a reality that there is a growing interest on the part of institutional investors. In fact, it is the reason why Coinbase is doing its best to prepare new products that will get the attention of institutional investors.
CME Group and Cboe Global Market have introduced their Bitcoin futures contracts in December 2017. In addition to this, you also have Goldman Sachs and ICE that are both already making their move towards the cryptocurrency industry.
Despite the bearish trends in the current crypto market, could this be a good thing? Does it mean that Coinbase is anticipating the entry of institutional investors soon? What exactly does it mean for the common investor? Should you HODL or even buy more at this time?
There is no denying that Bitcoin is far from what it used to be. Bitcoin was able to hit almost $20,000 at one point only to crash continuously to below $7,000 as of the moment. But if you are someone who views cryptos to stay for the next decades, then perhaps, it is a good thing to invest now.
