🌋 Introducing Coin50: Coinbase’s New Crypto Index
posted 12 Nov 2024
Leading U.S. crypto exchange Coinbase has launched the Coinbase 50 Index, also called Coin50, as its new market benchmark.
The Coin50 Index is designed to offer investors a wide-ranging and precise assessment of the cryptocurrency market, much like how the S&P 500 reflects the stock market.
Meet the Coinbase 50 Index (COIN50), a whole new way to track the performance of the cryptoeconomy,the exchange's team posted.
The Coin50 Index will cover the 50 leading cryptocurrencies by market cap (excluding stablecoins), delivering an average weighted overview of 80% of the crypto market.
Coin50 will be revised every quarter in accordance with the current changes in the market shares of its components. The included cryptocurrencies must satisfy criteria established by Coinbase experts, focusing on tokenomics, blockchain infrastructure, and security considerations.
In an interview with Fortune, Greg Tusar, Coinbase’s head of institutional products, noted that the goal was to create a far-reaching benchmark that surpassed Bitcoin’s dominance.
Coinbase believes that as the crypto industry evolves, the market's focus will broaden beyond Bitcoin, reinforcing the need for a thorough benchmark index for informed investors.
Due to regulatory limitations, this product is limited to qualified investors located outside the United States.
Coin50 remains accessible as a reference tool for all users through the Coinbase website and mobile app.
Coin50 will be revised every quarter in accordance with the current changes in the market shares of its components. The included cryptocurrencies must satisfy criteria established by Coinbase experts, focusing on tokenomics, blockchain infrastructure, and security considerations.
In an interview with Fortune, Greg Tusar, Coinbase’s head of institutional products, noted that the goal was to create a far-reaching benchmark that surpassed Bitcoin’s dominance.
I think Bitcoin is used as that benchmark, simply because there isn’t anything else to put in its place,Tusar stated.
With the launch of Coin50, Bitcoin takes the leading share at 50.3%. Ethereum holds a substantial 27.5%, while other top assets have smaller allocations: Solana at 6.4%, XRP at 3.1%, and Dogecoin at 1.5%. The collective weight of the remaining 45 cryptocurrencies is 11.2%.
Coinbase believes that as the crypto industry evolves, the market's focus will broaden beyond Bitcoin, reinforcing the need for a thorough benchmark index for informed investors.
Coinbase introduces Coin50. Source: coinbase.com
Beyond being a valuable reference for market analysis and pricing trends, Coin50 has been tailored by Coinbase as an investment product resembling a perpetual futures contract. This type of derivative has no expiration, similar to call or put options that U.S. markets don’t offer.
Due to regulatory limitations, this product is limited to qualified investors located outside the United States.
Coin50 remains accessible as a reference tool for all users through the Coinbase website and mobile app.
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