Slashdot Mirror
Coinbase Announces Cryptocurrency-Focused Index Fund (marketwatch.com)
In an interview with CNBC on its "Fast Money" segment, Coinbase's President and COO Asiff Hirji said the digital-currency platform would launch a cryptocurrency-focused index fund. Details are scarce but Hirji said it will be intended to give retail investors broad exposure to virtual currencies, and would be targeted to accredited investors on Day 1. He also said the index fund would be market-cap weighted.
UPDATE: Coinbase has since issued a blog post detailing the announcement. They are also introducing Coinbase Index, which "is a measure of the financial performance of all assets listed on GDAX, weighted by their market capitalization."
UPDATE: Coinbase has since issued a blog post detailing the announcement. They are also introducing Coinbase Index, which "is a measure of the financial performance of all assets listed on GDAX, weighted by their market capitalization."
This is basically, the crypto version of a default credit swap. Take a bunch of securities that have no real assets backing them up, securitize them into a meta-stock, and sell it so basically just in case there was a way someone could perform due diligence, now it's moot.
This is basically the cryptocurrency (not "crypto") version of a collateralized debt obligation (CDO), not a credit default swap.
A credit default swap (CDS) is basically insurance that you buy when you feel your CDO's aren't actually backed by something of value (like the early 2000's real estate market or the current cryptocurrency market).