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Coinbase Ditches Its Index Fund

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Hi Guys,

Seems like Coinbase is not making a lot of right decisions lately, I think its arrogance and overconfidence  that is stopping them from taking right decisions. 

Found this interesting article, which states they couldnt find enough customers for their overhyped index funds, and are ditching the idea. 

Competition is already making things tough for them and i really hope the other exchanges take them over big time, because they really didnt make the xrp hodlers lives easy with their attitude. 

"Coinbase Ditches Its Index Fund in Favor of a New Retail Feature"

Coinbase – one of the largest digital currency exchanges in the U.S. – is nixing its index fund designed for accredited investors and shifting its focus to a new retail product, The Block reports

https://theblockcrypto.com/2018/10/11/coinbase-is-shutting-down-its-fund-aimed-at-big-investors-as-it-pivots-to-a-new-retail-product/

.

 

Coinbase first announced its fund back in March of 2018. The project was designed to give institutional investors easy access to the digital currency market by offering them an index that represents a basket of Coinbase’s listed assets. During this time, Coinbase representatives stated that they were “seeing strong demand from institutional and high net worth individuals.”

 

However, now the index fund has failed to attract an appropriate number of clients. Coinbase was reportedly unable to garner necessary revenue from the project and has since decided to move on to other endeavors.

The latest retail product entitled the Coinbase Bundle, launched at the end of September. Using the feature, investors can purchase an assortment of the coins offered on Coinbase with one click. Minimum purchases begin at $25. Differing from an index fund, Coinbase Bundle does not offer fixed methodologies, nor does it provide rebalancing options.

 

This is not the first feature of its kind. Circle introduced its clients to a similar product entitled Circle Invest, which allows users to buy up to 11 different tokens in a single investment. Circle also sports a lower purchasing minimum of merely $10. While the product has garnered solid reviews on Apple’s App Store, it remains unpopular amongst everyday users, and currently holds the #734 spot amongst finance apps according to App Annie.

 

Founded in 2012, Coinbase is a broad company that covers trading,institutional brokerage and venture capital. It has amassed more than 20 million users, though active user activity has fallen by roughly 80 percent this year."

"The company has worked hard to expand its team and has brought several renowned figures from the financial and tech industries on board, including former Instinet CEO Jonathan Kellner. Kellner will lead institutional sales and support for Coinbase beginning in 2019. He will work with the exchange to build an over-the-counter trading business, allowing Coinbase to better compete with exchanges such as itBit, Gemini and Kraken.

 

Furthermore, the company is looking to hire 100 additional employees for its New York office, where they’ll join a campaign to bring more Wall Street vendors to the crypto industry. Recently, representatives havestated their desire to employ roughly 1,000 individuals by the end of the year."

Edited by RDS

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28 minutes ago, Kpuff said:

Dude Bakkt will put coinbase out of business

totally agree, Nasdaq is not far as well bro.

There are plenty of exchanges after Coinbase's lunch. They had such a big chance of being ahead in the game, lost it all due to arrogance and their early success got into their heads 

Edited by RDS
Grammar correction

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I think when they were the only big boy in town they tried to set the ecosystem up around their own interests but now that they are just another fish in the pond they are realising they have got to shed a lot of weight to keep up to pace.

A couple of weeks they tweeted how they would drop the framework they had for listing coins in a bid to list more coins quicker. It reeks of desperation. As an xrp hodler I wish them nothing but the bottom of the barrel. Karma.

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22 minutes ago, RDS said:

totally agree, Nasdaq is not far as well bro.

There are plenty of exchanges after Coinbase's lunch. They had such a big chance of being ahead in the game, lost it all due to arrogance and their early success got into their minds. 

Very true if retail investors trusted in companies that have no real backing like coinbase we would be in the hype phase. Coinbase only offers custody to major institutions that put a minimum of 10 million dollars in; and the custody service that they have hired has a bad history of using clients money for themselves.

Now if I was a retail investor and I saw a reputable broker dealer such as the NYSE, NASDAQ, Ameritrade, Fidelity and so on offer crypto. People would say wow the broker that I've been working with for decades is finally offering crypto. I think it's finally safe to put my money in. That's the hype phase of crypto and the run up from last year will be intesified. 

As well as the financial advisors can finally push their clients to buy it. It's going to be amazing. Good times ahead

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44 minutes ago, RDS said:

totally agree, Nasdaq is not far as well bro.

There are plenty of exchanges after Coinbase's lunch. They had such a big chance of being ahead in the game, lost it all due to arrogance and their early success got into their heads 

Armstrong made a severe miscalculation believing the east coast boys would welcome him into their network.  What they've done is punched him in the mouth, took his lunch money and told him to go home.  Now he's trying to pivot to Asia.  Too little, too late.  I can only hope Japan denies/delays their approval making them more irrelevant then they've already become.

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17 minutes ago, leadballs said:

Armstrong made a severe miscalculation believing the east coast boys would welcome him into their network.  What they've done is punched him in the mouth, took his lunch money and told him to go home.  Now he's trying to pivot to Asia.  Too little, too late.  I can only hope Japan denies/delays their approval making them more irrelevant then they've already become.

I think Armstrong will be in the dole queue soon....

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Remember when this was the big Coinbase announcement on CNBC, when we are all thinking it was going to be XRP?  

Who would want to pay Coinbase 200 basis points per year to simply to hold various cryptos which the investor can simply buy on their own without paying Coinbase any additional fee for being in the index?  A joke from the beginning.  It was truly beyond belief.  I wish I could have been in the room listening to these guys deciding the annual fee they were going to charge.  ?Then recently I saw Coinbase lowered the annual fee 50%, to 100 basis points.  Not surprisingly, still no one wanted it.

Seems like a bad business decision by a very young company.  But that is par for the course when it comes to Coinbase.    

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1 hour ago, RDS said:

totally agree, Nasdaq is not far as well bro.

There are plenty of exchanges after Coinbase's lunch. They had such a big chance of being ahead in the game, lost it all due to arrogance and their early success got into their heads 

Exactly!!! It is no secret that Coinbase is extremely late to the game with respects to their coin offerings. In their many attempts to appeal to Wall Street as the "by the book" exchange limiting their platform to only BTC, ETH, LTE, BCH, in many ways, has been a huge factor to the decline in their daily trade volumes in addition to the prolonged downturn/retraction of the overall crypto market. I believe that large institutional brokers/players have been quietly/meticulously vetting which projects/platforms to put their money behind giving top-tier exchange outfits (i.e. ICE's-Bakkt, NASDAQ, Goldman, SBI-VC, etc.) time to get their trading platforms up and running. I think 2019 might just be the year for a culling of the many ICOs and crypto-exchanges. Coinbase has been trying for the longest time to attract institutions to their trading platform via their Index Fund launched back in March of this year. As usual, they overhyped the enthusiasm for this new fund with nothing to show for their efforts forcing them to curtail on-boarding fees as a bargaining chip for prospective investors. As mentioned, the subsequent lack of interest has forced Coinbase to re-think the ideal target audience for their trading platform. I think Coinbase realizes the error of their ways as they have been vocal of late with regards to adding more crypto assets to their platform, expanding to other countries, and focusing on retail-based offerings for your average joe retail investor via their Coinbase Bundles.  Coinbase's lack of a diversified crypto offering allowed other exchanges and retail trading platforms like Binance, Bithumb, Robinhood, and Circle unfettered room to grow in retail markets. It was fool's gold for Coinbase to have thought that the "Good Ole Boys" were going to give them a seat at their table to eat breakfast, lunch, and dinner.

Edited by King34Maine

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2 hours ago, RDS said:

Hi Guys,

Seems like Coinbase is not making a lot of right decisions lately, I think its arrogance and overconfidence  that is stopping them from taking right decisions. 

Found this interesting article, which states they couldnt find enough customers for their overhyped index funds, and are ditching the idea. 

Competition is already making things tough for them and i really hope the other exchanges take them over big time, because they really didnt make the xrp hodlers lives easy with their attitude. 

"Coinbase Ditches Its Index Fund in Favor of a New Retail Feature"

Coinbase – one of the largest digital currency exchanges in the U.S. – is nixing its index fund designed for accredited investors and shifting its focus to a new retail product, The Block reports

https://theblockcrypto.com/2018/10/11/coinbase-is-shutting-down-its-fund-aimed-at-big-investors-as-it-pivots-to-a-new-retail-product/

.

 

Coinbase first announced its fund back in March of 2018. The project was designed to give institutional investors easy access to the digital currency market by offering them an index that represents a basket of Coinbase’s listed assets. During this time, Coinbase representatives stated that they were “seeing strong demand from institutional and high net worth individuals.”

 

However, now the index fund has failed to attract an appropriate number of clients. Coinbase was reportedly unable to garner necessary revenue from the project and has since decided to move on to other endeavors.

The latest retail product entitled the Coinbase Bundle, launched at the end of September. Using the feature, investors can purchase an assortment of the coins offered on Coinbase with one click. Minimum purchases begin at $25. Differing from an index fund, Coinbase Bundle does not offer fixed methodologies, nor does it provide rebalancing options.

 

This is not the first feature of its kind. Circle introduced its clients to a similar product entitled Circle Invest, which allows users to buy up to 11 different tokens in a single investment. Circle also sports a lower purchasing minimum of merely $10. While the product has garnered solid reviews on Apple’s App Store, it remains unpopular amongst everyday users, and currently holds the #734 spot amongst finance apps according to App Annie.

 

Founded in 2012, Coinbase is a broad company that covers trading,institutional brokerage and venture capital. It has amassed more than 20 million users, though active user activity has fallen by roughly 80 percent this year."

"The company has worked hard to expand its team and has brought several renowned figures from the financial and tech industries on board, including former Instinet CEO Jonathan Kellner. Kellner will lead institutional sales and support for Coinbase beginning in 2019. He will work with the exchange to build an over-the-counter trading business, allowing Coinbase to better compete with exchanges such as itBit, Gemini and Kraken.

 

Furthermore, the company is looking to hire 100 additional employees for its New York office, where they’ll join a campaign to bring more Wall Street vendors to the crypto industry. Recently, representatives havestated their desire to employ roughly 1,000 individuals by the end of the year."

I thought the whole concept of an index fund was idiotic at the time. The crypto market is immature.  Everything is based on speculation and follows Bitcoin. The idea of an index fund is usually to hold a basket of diverse securities. Nothing diverse about holding 5 or 6 non utilized tokens all headed for 70-90% losses.  You could just buy Bitcoin and call it a day. 

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