The crypto market is currently in a downtrend and expectations of new institutional investors flooding the crypto market with fresh capital are high. Coinbase yesterday opened its Index Fund on investments of $ 250,000 to $ 20 million, allowing major investors to easily invest capital with great security.
Many companies are taking steps to simplify the entry of institutional investors into the crypto market and increase security. These include Coinbase, Nasdaq or a collaboration between Ledger, Nomura and Global Advisors.
When CoinBase launched its Index Fund at the beginning of this year, there was a lot of interest from big investors. For this reason, the Coinbase team has decided to define a new investment cap on the order of $ 250,000 to $ 20 million. Reuben Bramanathan, head of product development at Coinbase leads out that this step was implemented by the great interest of investors:
We have seen overwhelming interest from investors since we announced the fund earlier this year. At the time, we opened the fund to those who want to invest $ 250,000 to $ 20 million.
Launched in March, this Index Fund is aimed primarily at instituional investors with large capital who through an investment, gain access to all assets listed on Coinbase. All cryptocurrencies are weighted by market capitalization to ensure effective diversification. Losses are mitigated if a cryptocurrency performs badly.
Index Fund will also include Ethereum Classic after Coinbase announced a few days ago to add ETC to the stock market over the next few months. So far, however, only accredited investors resident in the United States are eligible to invest in the Coinbase Index Fund. However, Coinbase is planning an extension for all investors:
We are working to bring more funds to the market that are accessible to all investors and cover a wider range of digital assets.
This announcement comes at a time when nervous investors have dropped out of the market due to the ongoing downtrend in recent weeks to minimize their own losses. The current market situation offers ideal conditions for major investors to enter the crypto market favorably.
However, whether this actually means that new capital flows into the market and, as a result, the prices of all crypto currencies increase, remains to be seen for the time being. Currently, the total market capitalization is just under $ 280 billion, $ 60 billion less than on 10.06.2018.
The next few days will show whether the market can recover and the cop can take the helm again.
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Marko Vidrih
Image via Coinbase.com