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Nick Abouzeid

Coinbase Asset Management - Index funds, but for cryptocurrencies 💸

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Coinbase Asset Management is a managed, diversified cryptocurrency portfolio for accredited investors in the United States. 💸

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Ryan Hoover
This is an obvious extension for Coinbase but I didn't expect them to move this directly this quickly considering the demand they're challenged to meet (particularly in customer support) with their current offering. Coinbase is currently limiting the fund to U.S.-based accredited investors (similar to Bitwise). I'm curious if this will open up to non-U.S. and/or non-accredited folks. 🤔
Nick Abouzeid
Hunter
@rrhoover Hopefully coming soon!
Vladimir Filipović
@rrhoover Makes one wonder how complicated accreditation could be anyway :) https://www.penny-arcade.com/com...
Chris Messina
Top Hunter
Great tagline: "Index funds, but for cryptocurrencies 💸" Interesting:
Ryan Hoover
@chrismessina in comparison, Bitwise HOLD index fund is currently investing in: BTC - 50.0% ETH - 21.4% XRP - 10.1% BCH - 5.8% LTC - 3.7% EOS - 2.4% XLM - 2.1% DASH - 1.6% NEO - 1.7% XMR - 1.3% They rebalance the index every month to focus on the coins with the highest market cap (and a few other things) to provide a relatively stable investment opportunity (emphasis on relative 😊).
Harry Raymond
This has a lot of long-term potential but not super appealing at launch. - $10k minimum - 2% management fee seems high - Only 4 cryptos in Fund
Drew Meyers
@harryraymond "Only 4 cryptos in Fund" Yea, I agree. I can already buy those 4 crytos on coinbase... why wouldn't I just do it on my own?
Trevor Thompson
@harryraymond 2% management fee for an index fund is absurd. I see 2.5% on Bitwise. The fund needs 10x the currencies 1/10th the fee. What is the justification for the management fee??
Nick Abouzeid
Hunter
Props to @brian_armstrong and team for moving so quickly. 👏👏 Managing a diversified cryptocurrency portfolio is difficult for anyone: between different wallets and exchanges, it's akin to taking on a part-time job. Coinbase's new product helps accredited investors quickly invest in the broader cryptocurrency market, without the hassle. 2% is hard to swallow, but worth it to not have to think about personal security and wallet management. Curious to see the pricing model evolve as more of these launch. Coinbase also isn't alone in the crypto ETF/hedgefund space: Metastable Capital launched over the summer to much fanfare, and more traditional "blockchain VCs" like Polychain Capital have been around for years, leveraging their expertise to get pre-launch token allocations in the hottest blockchain startups.
Antonio Viggiano
I think this is a great product especially for people who want to trust a reputed company with their money and don't want to think too much about their investments. Otherwise, for those who are more tech savvy, there is always prism.exchange