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As interest in cryptocurrency has grown investors are increasingly looking for a safe way to invest in the rather unpredictable market of cryptocurrency coins. Coinbase has recently launched a cryptocurrency index.
At the moment the index includes Ethereum, Bitcoin, Bitcoin cash, and litecoin. Coinbase has just added Ethereum Classic to their platform, so this will also be added to the index fund.
The fund will most likely attract institutional money which heretofore has been lacking in the cryptocurrency market. Many think the introduction of institutional money to the market will cause the market to explode. The index introduced by Coinbase requires a minimum investment of $250,000. The maximum investment is twenty million dollars. Coinbase will charge a 2 percent fee.
As exchanges add the ability to buy crypto with fiat, Coinbase will be less important as an introduction to Bitcoin and other coins. Coinbase plans to offer more banking services in the future. The index fund is the first of many innovations at Coinbase.