XRP, SHIB, DOGE included in Coinbase's new fund, investors benefit
Coinbase's new fund COIN50 includes Dogecoin, XRP, Shiba Inu Coin in the investment portfolio along with industry giants such as Bitcoin and Ethereum, aiming to provide investors with a simplified way to invest in crypto assets.
Overview of COIN50 Index Fund
COIN50 was jointly developed by Coinbase and market index company MarketVector to provide investors with a single investment option representing 50 of the strongest performing crypto assets. The fund hopes to provide a convenient way for investors seeking a diversified cryptocurrency portfolio without having to manage multiple assets separately.
Coinbase product head Greg Tusar said that in addition to generating income for investors, COIN50 will also serve as a tool to enhance the brand and visibility of cryptocurrencies. He believes that COIN50 will become an important benchmark for the crypto market, helping investors and observers understand the overall performance of the industry.
Fund asset composition and weighting
COIN50 funds are weighted by market value to ensure that more mature assets occupy a larger share. For example, Bitcoin has the largest weight in the fund, reaching 51.7%, followed by Ethereum at 25.99%, and Solana at 6.5%. Dogecoin, XRP, and Shiba Inu coin have weights of 3.6%, 2.52%, and 1.0%, respectively, showing their positions in the overall fund.
To ensure that the fund can follow market changes, Coinbase will regularly adjust asset weights and update the fund composition based on the dynamics of the crypto market.
Accessibility and Trading Options
Initial access to the COIN50 fund will be limited to users outside the United States, the United Kingdom, and Canada due to crypto regulatory restrictions in these regions. However, institutional investors can access the fund through the Coinbase International Exchange, while retail investors can invest through Coinbase Advanced.
In addition, Coinbase also offers perpetual futures contracts with up to 20x leverage, allowing qualified investors to leverage their investments based on the performance of COIN50.
The launch of COIN50 is part of Coinbase's expanded product line. In September, the exchange also launched Coinbase Wrapped Bitcoin (cBTC), an ERC-20 token designed to maintain a 1:1 peg to Bitcoin, aimed at improving Bitcoin liquidity within the Ethereum ecosystem. Through innovative products such as COIN50 and cBTC, Coinbase hopes to further consolidate its market position and provide users with more diversified crypto asset investment options.
