Coinbase is most likely shutting down its index fund just after 4 months of the launch due to weak investor response. The exchange will instead shift its focus on new retail offerings such as Coinbase bundle in order to attract new customers.
Coinbase released the crypto index fund, “equivalent to the S&P 500 index” in June 2018 in order to target HNI clients to allocate a minimum investment of $250,000 to up to $20 million to this fund. The index fund was one of the great efforts made by Coinbase to attract big investors. However, it was not able to gain a lot of attraction.
During the launch, the fund was being criticized and some investors stated issues regarding the fees and lack of support for various crypto assets which the firm has looked after by decreasing management fees by 50% to 1% annually.
The news of shutting down its fund has arrived just after Adam White, exchange's head of the institutional division quit the company. This might have also forced the firm to shift its focus on more new retail offerings.
The Coinbase bundle is actually inspired from Circle Invest, it enables investors to purchase bundles of 11 tokens with an as low investment as of $10 USD. Coinbase bundle is the newest product launched for retail investors who want to simplify cryptocurrency trading portfolio by investing just $25,£25, or €25. However, Circle Invest doesn't much popular, due to which Coinbase decided to copy it.
Coinbase is not only the firm which faces issues in attracting investors to survive this difficult market. Coinfloor, London's oldest crypto exchange dismissed a large number of employees due to decrease its market share. Before a month, Zebpay shutdown its crypto platform due to improper regulatory conditions.