Coinbase (Nasdaq: COIN) has launched the Coinbase 50 Index (COIN50), which the crypto exchange described as “a regulated crypto benchmark developed in partnership with Coinbase Asset Management and Market Vector Indexes.”
The COIN50 benchmark tracks the top 50 digital assets listed on Coinbase that meet specific inclusion criteria, providing crypto investors a tool to observe broader trends in the cryptoeconomy. Designed for traders seeking insights into the overall performance of the cryptocurrency market, COIN50 enables users to gain diversified exposure to digital assets. Coinbase stated:
In traditional finance, indices and their associated tradable products have long provided a simple yet effective way for investors to gain broad exposure and benchmark their portfolios. Crypto is now ready for the same.
The new crypto index, rebalanced quarterly, is “a market cap-weighted index of the top 50 assets that meet the index’s criteria,” the announcement details. Coinbase noted that all assets in COIN50 are vetted through a rigorous process on Coinbase Exchange, which evaluates assets based on criteria such as token economics, blockchain design, and security measures. This systematic approach offers investors a transparent, standardized means to track crypto market performance, the crypto firm said, emphasizing that as the COIN50 covers approximately 80% of the global crypto market cap, it is positioned as a representative index for crypto investors.
The announcement details:
Beginning later today, eligible traders will be able to trade the Coinbase 50 Index via a COIN50 perpetual futures contract (COIN50-PERP) with up to 20x leverage on Coinbase International Exchange, for eligible institutional users, and Coinbase Advanced, for eligible retail users.
“This contract will only be available to users in eligible jurisdictions outside the US, UK, and Canada,” the exchange noted. Coinbase views COIN50 as a foundational product, with plans to expand their index offerings as the cryptoeconomy matures, potentially creating even broader indices to serve an evolving digital assets market.
