Coinbase has just launched the Coinbase COIN50 index, a regulated benchmark to give investors diversified exposure to top digital assets. A collaboration of Coinbase Asset Management and Market Vector Indexes worked to develop the new COIN50 index. This is one of the biggest efforts towards transparency and standardization of the digital asset market like what’s been done in traditional finance.
Regulated Crypto Index for Diversified Investing
Coinbase’s COIN50 index tracks the top 50 digital assets listed on the platform that meet strict inclusion criteria, and can give crypto investors a view across the broader cryptoeconomy.
According to Coinbase, “Crypto is now ready” for the kind of accessible, benchmarked portfolio exposure that’s been available in traditional finance through indices for years. It gives you exposure to many digital assets with diversification without having to invest in each one individually.
Like traditional finance indices, the Coinbase COIN50 is market cap weighted and rebalanced quarterly to ensure it reflects the top assets. Coinbase explains: “The COIN50 index is a market cap weighted index of the top 50 assets that meet specific criteria.”
It also looks at token economics, blockchain design and security features in the most rigorous vetting process at COIN50 to allow only those that pass through high standards on Coinbase.
This systematic approach gives investors a transparent, standardized way to track performance since the COIN50 represents about 80% of the global crypto market cap.
Perpetual Contracts for More Investment Options
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It also announced that eligible traders can start trading the COIN50 index through a COIN50 perpetual futures contract, COIN50-PERP, with up to 20x leverage, on Coinbase’s international exchange for institutional investors and Coinbase Advanced for eligible retail users. This will only be available in jurisdictions outside the US, UK and Canada in accordance with Coinbase’s regulatory environment.
Since Coinbase considers the COIN50 to be a core product, the index will expand as new assets enter the digital asset market. Other products in the future could be even broader indices that serve the changing crypto economy even more.
For now, sources say the COIN50 index will be a core benchmark and a new standard.
Regulated Crypto Indices to Come
COIN50 is the first step towards more regulated and transparent crypto products for investors through a safe and standardized way to track the market.
As the crypto market grows, COIN50 could be the tool investors need to manage their crypto portfolios. Coinbase will be literally leading the way in this space.
Coinbase’s COIN50 is a new benchmark for crypto investors to get diversified market exposure like in traditional finance and a regulated way. As the crypto economy evolves, experts believe the COIN50 and others like it will be how investment strategy is redefined in the digital asset space.
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