The US-based major cryptocurrency exchange Coinbase has announced that it is reducing the annual management fee for Coinbase Index Fund from 2% to 1% for all new and existing investors.
The move has been taken in order to attract investors who are familiar with lower-fee index funds in other asset classes, the exchange said. This will help introduce a new category of institutional investors into the cryptocurrency space, it added.
Coinbase Index Fund has also been rebalanced to include Ethereum Classic, following its listing on Coinbase last week. With this, all Coinbase investors now have exposure to Ethereum Classic. The fund will continue to add new assets when they are listed on Coinbase. The exchange is currently exploring five more assets for listing - Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX).
Coinbase Index Fund was first launched in March and opened for investments in June of this year. The Fund gives investors exposure to all assets listed by Coinbase, weighted by market capitalization. At this stage, the fund is open to US residents who are accredited investors. The minimum investment is $250,000 and the maximum is $20 million.
Coinbase has been on the expansion spree since the start of this year. Just last week, it announced two new developments - instant trading and increased trading limits to $25,000 per day for most customers. Recently, it added support for British Pound to buy cryptos. Coinbase also returned to Wyoming, a state in the western United States, after renewing its money transmitter license there.