Here’s how Coinbase’s cryptocurrency index fund may help Bitcoin market
The index fund for cryptocurrencies when launched will help in reflecting major trends in the cryptocurrency market just like any other equity index gives a sense of an economy’s health.
The popular online exchange Coinbase is launching a weighted index fund for cryptocurrencies. The index fund for cryptocurrencies when launched will help in reflecting major trends in the cryptocurrency market just like any other equity index gives a sense of an economy’s health. The exchange index fund will also offer an easy way to the US investors to get exposure to the cryptocurrencies which are traded on the exchange, Coinbase President told CNBC. The investors in the US can now have exposure to all the crypto-assets which are listed on the GDAX. He also told CNBC that only the residents of the US are allowed to invest in the index currently.
Bitcoin was trading at $10,496.43 down by nearly 2 percent at the time of reporting. The highest that Bitcoin touched today was $11,007. Bitcoin touched $20,000 mark in the Christmas month last year only to crash by more than half as the year started. The price of the popular digital currency and global payment system even dropped to $5,000. Since then, Bitcoin is on a steady up move and currently hovers around $11,600 mark.
Warning from The Bank of England
Just days back, The Bank of England issued a warning about a forthcoming regulatory crackdown on cryptocurrencies including Bitcoin. The Bank of England had said that since cryptocurrencies fail to perform the most basic function as money hence attract chances of a regulatory crackdown. It is the right time to regulate the cryptocurrencies in order to counter the illegal activities, The Bank of England Governor Mark Carney had said. The cryptocurrencies are facing a lot of criticism in different parts of the world due to their ease to be misused for drug dealing, money laundering, and terrorism financing.