Coinbase announced yesterday that they have officially lowered their crypto index fund’s annual management fee to 1%. While announcing this new move, Coinbase also invited new investors to their institutional investment program. The firm also announced the addition of Ethereum Classic (ETC) to their list of supported cryptocurrencies and explained that more crypto assets may be added in the future.
Coinbase Lowers Their Annual Index Fund
On the 13th of August, 2018, Coinbase, currently one of the largest cryptocurrency platforms, announced a reduction in their annual investment management fee. Previously, the company charged institutional investors a fee that equaled 2% of their profile value for their management services. Now, investors will only pay an annual fee that is equal to 1% of their portfolio value. This new fee will be applied to all existing portfolios on their investment platform, as well as all incoming accounts in the future.
The announcement was published on the official Coinbase blog. The company explained that this move would hopefully help them attract new institutional investors to their platform. They have also invited institutional investors who are already familiar with low-fee investment vehicles to their platform.
In addition to announcing the reduced annual investment management fee, Coinbase also mentioned the addition of Ethereum Classic. The Coinbase platform added support for this rapidly-growing cryptocurrency this week. In addition to Coinbase Pro supporting the Ethereum Classic cryptocurrency, now, the American firm also added this crypto to the list of digital assets available to their institutional investors.
The Coinbase Index Fund offering is open to residents of the United States who are accredited investors. New investments into this fund require a capital allocation of $250,000 or more. The platform currently has a maximum investment amount of $20 million.
Coinbase Exploring The Addition Of More Cryptocurrencies
During the aforementioned announcement, the company also noted that it is currently exploring the addition of more digital currencies to its index fund. Apart from the addition of Ethereum Classic, which was added this week, the company is currently exploring five other assets that may also soon join their list of cryptocurrencies offered to customers of their main platform, as well as to investors on the institutional investment platform.
At the moment, the company is not yet sure whether they will be adding all five of these assets to their platform. According to the official announcement regarding these cryptocurrencies, the process of adding support for these coins may be technically difficult.
Coinbase also explained that the initial offering of the five coins they are currently exploring might not be available to their customers who reside within the United States. This decision is based on the current jurisdictions that are in place regarding transactions associated with cryptocurrencies in the country.
Should Coinbase decide to add any of the cryptocurrencies that are being explored, the company has announced that they will make these particular coins available to investors who are part of their institutional investment program as well.
Coinbase has invited new investors to their platform after dropping their annual investment management fee to 1%. The company is exploring ways to attract new categories of investors to their institutional investing platform. Coinbase also added the Ethereum Classic cryptocurrency this week, and they are exploring the addition of five additional currencies in the near future.