Coinbase has rolled out a unique regulated cryptocurrency benchmark. This initiative is aimed at attracting qualified investors into the crypto space. The benchmark is designed to deliver a diversified exposure to a specific crypto asset class.
Renowned cryptocurrency exchange platform, Coinbase, has recently unveiled a unique regulated cryptocurrency benchmark. This newly launched benchmark is targeted at drawing the attention of prominent investors into the digital currency sector, providing them with the opportunity to delve into the world of cryptocurrencies. The introduction of this benchmark is a significant stride in promoting diversified exposure to a specified asset class within the crypto space.
The Launch of the Crypto Benchmark
The declaration of the cryptocurrency benchmark launch was disclosed in an online release by Coinbase. The primary objective of this benchmark is to provide an avenue for qualified investors to gain a widespread exposure to the cryptocurrency market. The benchmark is designed in such a manner that it will reflect the performance of some of the largest cryptocurrencies that are currently traded on Coinbase’s platform.
Regulation and Eligibility Criteria
The launch of the regulated cryptocurrency benchmark aligns with the regulatory standards set out by the US Securities and Exchange Commission (SEC). As part of this alignment, rules have been formulated to limit the class of investors who can invest in this new product. To be eligible, an investor must be an accredited investor under the SEC rules, a qualified purchaser, or a client of a discretionary account that is managed by an eligible advisor.
The benchmark will not be listed on a national securities exchange and it is not anticipated to trade on a secondary market. It is developed to serve as a long-term investment strategy for those who are eligible and are interested in the idea of gaining diversified exposure to the cryptocurrency asset class.
Strategic Asset Allocation
The regulated cryptocurrency benchmark will offer a strategic asset allocation that is weighted by market capitalization. This allocation will be based on the market capitalization of the cryptocurrencies available for trading on Coinbase’s platform. The weighting of individual cryptocurrencies in the benchmark will be re-balanced on a quarterly basis to ensure that the benchmark reflects the current market conditions.
Coinbase’s Expansion Strategy
The launch of the regulated cryptocurrency benchmark is another significant step in Coinbase’s broader strategy to expand its offerings and attract more investors into the cryptocurrency market. This initiative is a testament to the company’s commitment to providing a wide range of products and services that cater to the varying needs of its customers. This latest product complements the other investment strategies available on Coinbase’s platform, including the Coinbase Index Fund and the Coinbase Bundle.
Conclusion
The launch of the regulated cryptocurrency benchmark by Coinbase is a significant development in the cryptocurrency market. It is not only expected to attract a new class of investors into the crypto space but also to provide a diversified exposure to the asset class. This development aligns with Coinbase’s mission to create an open financial system globally.
