San Francisco –based cryptocurrency exchange and wallet service provider Coinbase has revealed that it made a few updates to its Index Fund, reducing its annual management fee and adding support for Ethereum Classic (ETC), according to a blog post published on August 13.
The U.S. exchange announced the reduction of its Index Fund’s annual management fee will be cut from 2 to 1 percent “for all new and existing investors”.
“We’re reducing our fee in order to attract investors who are familiar with lower-fee index funds in other asset classes. This will help introduce a new category of institutional investors into the cryptocurrency space,” read the post.
The first discussions regarding the Index Fund started back in March, and according to Coinbase’s CEO Brian Armstrong it was intended to be “the S&P 500 index equivalent” for cryptos.
“With Coinbase Index Fund, our goal is to give people broad exposure to this asset class (without hefty management fees), and create the S&P 500 index equivalent to track the industry overall,” tweeted Armstrong.
Index Fund adds ETC
Coinbase also announced on Monday that the Index Fund has been rebalanced to include Ethereum Classic.
The first plans to incorporate ETC on the Coinbase platforms started around mid-June. The token has already been added on Coinbase Pro, the company’s platform for advanced traders. It is also intended to add ETC on Coinbase’s main platform, which is aimed more towards catering a broader customer segment, after liquidity increases in the following weeks.
The company also stated that it was considering adding another five crypto coins to its platform –– Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX).
The Index Fund was initially launched having four major cryptocurrencies. The fund is only available to U.S. resident accredited investors which have a net worth of over $1 million or an annual salary of more than $200,000 – who can make investments between $250,000 and $20 million.