While Coinbase touted the announcement as "huge," some investors were disappointed the fund will only feature 4 assets at the moment. It will also only be available to accredited investors.
I think it is positive news. The news on the index fund continues to pave the way to increase adoption for the asset class. It gets cryptocurrencies much closer to be an investable asset class although only for accredited investors at this point. This will be a great opportunity for volumes to increase as markets in the space still remain inefficient so prices may not always reflect true demand/supply economics. It will also help those bigger investors that are on the sidelines and hesitant given concerns on security and knowledge about the function of digital wallets.
I think it is positive news. The news on the index fund continues to pave the way to increase adoption for the asset class. It gets cryptocurrencies much closer to be an investable asset class although only for accredited investors at this point. This will be a great opportunity for volumes to increase as markets in the space still remain inefficient so prices may not always reflect true demand/supply economics. It will also help those bigger investors that are on the sidelines and hesitant given concerns on security and knowledge about the function of digital wallets.
Isn't that a sort of derivative? If so, they're not really buying coins. It's like buying a Bitcoin future s contract.