Coinbase Index Fund Cuts Down on Annual Fee
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.