Coinbase has reduced its index fund’s annual management fee and added ETC to the list of supported cryptocurrencies.
US-based cryptocurrency exchange Coinbase has updated investors on a couple of changes to its Index Fund, with the reduction of the service’s annual management fee and the addition of Ethereum Classic (ETC).
Coinbase said in a blog post on Monday that the Index Fund’s annual management fee will be cut from 2% to 1% for both existing and new investors.
“We’re reducing our fee in order to attract investors who are familiar with lower-fee index funds in other asset classes. This will help introduce a new category of institutional investors into the cryptocurrency space,” the company explained.
The Coinbase Index Fund, the exchange’s custodial fund intended for institutional investors, was launched in mid-June. Currently, the service is available only to US resident accredited investors who have a net worth of more than $1 million or an annual salary of more than $200,000. The minimum investment is $250,000 and the maximum is $20 million.
The Index Fund was first discussed back in March, with the intention to be “the S&P 500 index equivalent” of the crypto world, according to Coinbase’s CEO Brian Armstrong.
“With Coinbase Index Fund, our goal is to give people broad exposure to this asset class (without hefty management fees), and create the S&P 500 index equivalent to track the industry overall,” Armstrong posted on Twitter.
ETC added to Index Fund
Coinbase further revealed on Monday that the Index Fund has been rebalanced to incorporate Ethereum Classic.
The exchange announced plans to include ETC on its platforms in mid-June. The altcoin has already been listed on Coinbase Pro, the company’s advanced trading platform. ETC is also set to become available on Coinbase’s primary platform, which is intended for a more general audience, once liquidity increases in the coming weeks.
ETC’s listing, according to Coinbase, is only the first step towards adding more assets to the platform, with the company considering other cryptocurrencies including Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX).
US-based stock and crypto trading app Robinhood also added support for Ethereum Classic last week. The flurry of exchange listing announcements boosted investor sentiment, sending the cryptocurrency from around $14 to as high as $20 with a market capitalization of over $2 billion. The coin surpassed the market cap of NEO (NEO) and Monero (XMR), climbing to the number 12 spot in the cryptocurrency chart. However, the surge was short-lived. At press time, ETC is standing at the 14th position, having lost 17.75% to $10.97 in the past 24 hours, according to Coins.Online data. The decline was in line with the general crypto market, where most virtual assets were trading in the red.