Coinbase’s two core functions are as a Global Digital Asset Exchange (GDAX) that trades a variety of digital assets on a professional asset trading program and a retail broker of Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for fiat currencies as mentioned. It also has an Application Program Interface (API) for developers to build applications and accept payments in digital currencies.Coinbase’s cryptocurrency index fund
The Index Fund is the first investment vehicle as part of Coinbase’s new asset management division. Cryptocoins in the fund will consist of all the currencies on the company’s GDAX. At launch it is to contain: 62 percent Bitcoin, 27 percent Ethereum, 7 percent Bitcoin Cash and just 4 percent Litecoin. The fund resembles traditional index funds that mimic the performance of indices such as the S & P or even the entire stock market.Whenever a new asset is added the fund will be rebalanced. Ripple is expected to be added soon.In the future, Coinbase plans to offer investment vehicles that are not listed to those that are listed on GDAX. However, for now the company feels that keeping to the coins listed will increase the liquidity of the fund.Reuben Bramanathan, a product manager at Coinbase said: “Index funds have changed the way that many people think about investing. By providing diversified exposure to a broad range of assets, index funds enable investors to track the performance of an entire asset class, rather than having to select individual assets.”Investing in the fund
New investments can be made once a month. Redemptions can be made quarterly. There is no lockup period,Funds will be secure
The fund is expected to launch in a few months but accredited investors are able to sign up now.Coinbase already has competitors.