San Francisco-based Coinbase is reportedly planning to shut down its index trading product targeting accredited investors after user-demand failed to reach expectations.
According to a recent report by The Block that cites insiders familiar with the matter, Coinbase has made the decision to forego its market-cap-weighted index fund after raising less than the firm expected.
Coinbase will now shift more attention towards its ever-popular retail trading offerings, including its retail index product, Coinbase Bundle, a market-weighted selection of the five cryptocurrencies available for purchase with as little as $25.
The decision comes at a good time, as competition is beginning to heat-up. Abra, an all-in-one cryptocurrency wallet and trading platform, unveiled the Bitwise 10 Crypto Index (BIT10), allowing Abra users to gain exposure to around 85% of the entire crypto market with a single investment vehicle.
More recently, Circle Invest, the retail cryptocurrency trading platform of Circle, launched new investment products called “Collections” that allow users to invest in mini cryptocurrency indices that are sorted by asset function.
Whether or not Coinbase’s shift in index focus from institution to retail customers is an indication of a larger trend is yet to be seen, as recent surveys have suggested that institutions are, at the very least, interested in adopting Bitcoin trading products.
Nonetheless, Coinbase is still developing a number of products for institutional investors, including an over-the-counter trading operation.
More: Coinbase is shutting down its fund aimed at big investors as it pivots to a new retail product
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.