According to Reuben Bramanathan, product lead at Coinbase Asset Management, since the announcement of the fund in March this year, accredited investors have shown “overwhelming interest” in the San Francisco-based company. The performance of the fund has been a reflection of the decline in crypto markets, recording a three-month return of -7.20% as of May 1.
Coinbase isn’t the only enterprise aiming to capture a portion of the expanding cryptocurrency index fund market, undeniably. In December, Bitwise Asset Management inaugurated a crypto index fund that monitors the ten leading cryptocurrencies.
The innovator in the field is Grayscale Investments, located in New York. It began with the Bitcoin Investment Trust, which trades comprehensively in the market. They elaborated on their rationale for not supporting an ETF, citing reasons from inadequate regulation at crypto exchanges (which inform crypto prices) to the lack of maturity needed to become the “Google of crypto.”
The anticipation of expansion to the largest four cryptos in North America is slated for the “next few months.” This potential growth spotlights Coinbase’s initiative. (See also: Coinbase Launches Cryptocurrency Index Fund.)
As of the latest reports, the number of global cryptocurrency exchanges exceeds 500, reflecting the sector’s immense growth and dynamism.