Crypto exchange Coinbase has introduced a new benchmark for tracking over 50 digital assets, advancing its suite of products for traders and institutional investors overseas.
In a Nov. 12 announcement, the company unveiled the Coinbase 50 Index (COIN50), covering major crypto coins and tokens listed on the exchange. The Index promises exposure to crypto market trends, with six cryptocurrencies making up 91% of the benchmark weight: Bitcoin (BTC), Ether (ETH), Solana (SOL), Dogecoin (DOGE), XRP (XRP), and Cardano (ADA).
With the move, Coinbase is mainly targeting emerging markets and crypto-friendly jurisdictions since derivatives products tied to the index exclude major markets like the United States, the United Kingdom, and Canada.
Related: Coinbase stock breaks $300 for first time since 2021
COIN50’s basket breakdown. Source: Coinbase
According to the exchange, only eligible institutional traders will be able to get exposure to the index via perpetual futures contract — which allows traders to speculate on the assets’ performance indefinitely — on Coinbase International Exchange. Eligible retail users will be able to access the product via Coinbase Advanced.
The product isn’t Coinbase’s first crypto benchmark. In 2018, the exchange launched its Coinbase Index Fund for institutional clients. The product, which required a minimum investment of $250,000, was discontinued just four months later as the company decided to focus on broader solutions to include retail users with minimum deposits as low as $25.
The new crypto benchmark will dispute market share with similar products backed by global index issuers such as the S&P Cryptocurrency Indices — a portfolio of eight indexes created by S&P Global to offer insights and benchmarks on digital assets performance.
Daily closing value of the Nasdaq Crypto Index (NCI). Source: Nasdaq
The Nasdaq also offers its own index for investors to measure the performance of a pool of digital assets. Launched in 2024, the Nasdaq Crypto Index (NCI) includes eight cryptocurrencies, with Bitcoin and Ethereum comprising approximately 90% of its weight. The index is posting a 113.4% return as of Nov. 11 and has gained 38.5% over the past 30 days.
Related: What is a crypto index fund, and how to invest in it?