Leading cryptocurrency exchange Coinbase has announced that the company will be reducing its annual management fee for its Coinbase Index Fund from 2 to 1 percent for all new and existing investors. The blog post published yesterday, August 13th, states that Coinbase is hoping to attract a new category of institutional investors into the cryptocurrency space.
Coinbase Index Fund Seeking to Attract Institutional Investors
First launched in June of this year, the Coinbase Index Fund is designed to attract big-money investors through offering exposure to all assets listed on the popular Coinbase exchange. The fund is open to US accredited investors who have a net worth of more than $1 million or an annual salary of over $200,000. The fund requires a minimum investment of $250,00, with a cap set at $20 million.
“We’re reducing our fee in order to attract investors who are familiar with lower-fee index funds in other asset classes,” reads the blog post. “Coinbase Index Fund has also been rebalanced to include Ethereum Classic, following its listing on Coinbase this week. All investors now have exposure to Ethereum Classic. The fund will continue to add new assets when they are listed on Coinbase. Coinbase is currently exploring five more assets for listing.”
Suggested Reading: Learn more about Coinbase in our Coinbase Review.
Ethereum Classic Continues to Struggle Following Initial Coinbase Boost
Coinbase first made the announcement that the exchange would be adding Ethereum Classic to its platform on June 11th. As is the tendency with most new Coinbase listings, Ethereum Classic’s price immediately jumped in value following the announcement, climbing from $12 to nearly $18 in less than 2 weeks, despite downward trends within the rest of the cryptocurrency market.
However, after reaching highs of over $20 this month, ETC has since fallen back down to $10.72 at time of writing—down over 43 percent in the last 7 days.