- Coinbase’s COIN50 Index tracks the top 50 crypto assets, rebalancing quarterly to reflect current valuations.
- COIN50 futures offer up to 20x leverage, available exclusively outside the US, UK, and Canada.
- The COIN50 Index covers about 80% of the total crypto market cap, aiming for broader market representation.
Coinbase has increased its product offerings and market domination in cryptocurrency by introducing the Coinbase 50 (COIN50) Index. This new index covers the top 50 digital assets listed on Coinbase. The COIN50 index is developed in partnership with Coinbase Asset Management and Market Vector Indexes. It has certain fundamental signs of strength, making it a reliable measure of the crypto economy’s performance.
The COIN50 index is calculated in the same style as a market cap-weighted index. The index is rebalanced quarterly to present the crypto market’s current valuation landscape. Each asset in the index undergoes a thorough evaluation based on token economics, blockchain architecture, and security.
This selective process fosters investor confidence by ensuring only the most viable assets are included.
Trading and Licensing the COIN50 Index
A perpetual futures contract for the COIN50 Index with up to 20x leverage has been introduced by Coinbase. Eligible institutional and retail users in some jurisdictions outside of the US, UK, and Canada will be able to access this contract. This is expected to help improve the index’s liquidity and allow the trading community to participate in the crypto markets with legal protection.
Moreover, Coinbase is exploring additional avenues to enable broader access to the COIN50 Index. They are considering various structured products and licensing opportunities, allowing other platforms and financial products to integrate this index. Interested parties are required to enter into a licensing agreement to utilize the index data or trademarks for commercial purposes. This ensures compliance and standardization across uses.
Market Impact and Future Prospects
The introduction of the COIN50 Index occurs during a wide bullish trend in crypto and equities, eying favorable political developments in the United States. Besides, it offers a comprehensive benchmark for the crypto economy and sets the stage for future expansions as the market evolves. With about 80% of the total crypto market cap currently covered. Coinbase plans to develop a broader index that aligns with the growing diversity and size of the market.
