Coinbase launches Coin50 index to offer investors broader exposure to the cryptocurrency market
US giant cryptocurrency exchange Coinbase has launched a global market benchmark, offering investors transparent and reliable insight into the cryptoeconomy’s performance.
The company today introduced the Coinbase 50 Index (Coin50), representing the top 50 digital assets by market capitalisation on the Coinbase Exchange.
Coin50 will compete with similar products backed by global index issuers such as S&P Global’s Cryptocurrency Indices and Nasdaq’s new Crypto Index, which has Bitcoin and Ethereum comprising 90% of its weight.
Market trends
Coin50 is a quarterly-rebalanced market cap-weighted index that can be used by crypto traders outside of the US, UK and Canada to track broader market trends and gain insight into the overall performance of the cryptoeconomy.
The product promises exposure to crypto market trends, with Bitcoin, Ether, Solana, Dogecoin, XRP and Cardano currencies making up 91% of the benchmark weight.
Eligible institutional traders will gain exposure to the index via perpetual futures contracts on the Coinbase International Exchange, while eligible retail users will be able to access the product via the Coinbase Advanced app.
Every asset within Coin50 is listed and accessible on Coinbase Exchange and undergoes a rigorous vetting process against legal, compliance and technical security standards.
Coinbase has plans to launch a significantly broader index in the near future, which will align with the growing size and diversity of the crypto market.
Go-to benchmark
Head of institutional products Greg Tusar hopes Coin50 will become the go-to benchmark for investors.
“I think Bitcoin is used as the benchmark simply because there isn’t anything else to put in its place,” Mr Tusar said.
“As the crypto market matures, Bitcoin’s dominance will likely shrink, making it less of a reliable indicator for the entire market.”
“What we’re trying to do is establish a benchmark that is not specific to any asset—instead of watching Bitcoin alone, we want people to gauge the whole market—it’s time for a broader picture that captures the full scope of crypto assets.”
Past ventures
Coin50 is not Coinbase’s first venture into crypto benchmarking.
In 2018, the exchange launched the Coinbase Index Fund for institutional clients, which required a minimum investment of $250,000.
The fund was discontinued after four months when the company decided to focus on broader solutions to include retail users with minimum deposits as low as $25.