Cryptocurrency exchange giant Coinbase has been up to a lot of things lately. Some of its most recent moves include adding Ethereum Classic to its exchange and acquiring Keystone Capital to gain broker-dealer status.
Now, the company is officially opening a new crypto index fund.
In a blog post, Coinbase cited how it has noticed a surge of interest coming from new investors – some of which include investors planning to invest 6 to 8-digits in dollars. To address this new opportunity, the company is starting by catering to these types of customers in the US. Though this may seem too exclusive for the crypto-industry’s taste, Coinbase has been known to tailor-fit services to institutional customers as it had done when acquiring Keystone Capital. The acquisition enabled services to be improved for institutional trading.
Coinbase CEO Brian Armstrong explains that the company offers services at lower rates versus competition. Having a large customer base and knowledge of services also allows it to offer the most relevant assets and services.
The focus on institutional trading comes with good reason. As can be seen in recent news, the SEC has been serious in its efforts to make crypto-activity compliant with regulations. In lieu of this initiative by SEC, it is generally more difficult to reach the bulk of the public through advertising. Even giants in the tech industry have noticed and decided to just ban crypto-related advertising.
Listing Ethereum Classic
Ethereum has been gaining a lot of applications and support from coin projects in need of smart contract technology. However, Ethereum Classic does not share the same fate even if it represents the original Ethereum project. Coinbase recently announced the listing of ETC, and the move dramatically influenced the price of Ethereum as it gained interest from the public. It now sits beside Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Having been founded in June 2012, Coinbase appears slow in the listing of new coins. This is because of the company’s pride in keeping its moves methodical when it comes to expanding. The stance looks to be wise in an industry where regulations can seriously hamper decisions that are not well thought of.
The listing of ETC looks to be part of a longer-term plan of the company. A blog post goes on to say:
“We will now begin the engineering work (Step 4) for supporting Ethereum Classic. As part of this process, customers can expect to see public-facing APIs and other signs that the asset is being added. When we reach the final testing phase of the technical integration, which we expect to occur over the next few months, we will publicly announce a launch date for trading via our blog and Twitter (Step 5).
When the final stage of technical integration is reached, Coinbase will announce the date on which its prime and pro customs can begin placing limited orders of ETC. When this resting market reaches sufficient liquidity, live trading will commence on the open platform.”