TL;DR
- Coinbase launches the Coinbase 50 Index (COIN50), an index to track the performance of major cryptocurrencies.
- The index is comprised of the top 50 digital assets and is based on a rigorous and reliable methodology.
- Eligible users can trade COIN50 via perpetual futures on Coinbase Advanced and Coinbase International Exchange.
The Coinbase 50 Index (COIN50) is the new global benchmark designed to track the performance of the cryptocurrency market, created by Coinbase, one of the most well-known and regulated exchanges in the cryptoasset industry.
This index offers an efficient way to track the top 50 digital assets, providing diversified exposure to tokens, sectors and themes beyond Bitcoin (BTC) and Ethereum (ETH), helping to reduce the idiosyncratic risk associated with cryptocurrency market volatility.
Information about the launch of this index was revealed by Coinbase in November 2024, and has been noted for its transparency and reliability.
The COIN50 is based on a robust methodology that includes a market capitalization weighting process and a rigorous asset eligibility assessment, excluding stablecoins and privacy coins.
This ensures that only assets that are sufficiently liquid and verifiable are included, making it easier to include them in investment portfolios. The original source of this information comes from Coinbase‘s own website, which highlights the work done in conjunction with MarketVector, a company specialized in the administration of regulated indices.
Not only does this index offer a way to evaluate the crypto market as a whole, but it also allows investors to access diversified exposure to a wide variety of digital assets through a single asset: the COIN50-PERP (a perpetual future of the index).
Available to institutional and Coinbase Advanced users in select jurisdictions outside of the US, UK and Canada, the COIN50-PERP simplifies the investment process, eliminating the need to manage multiple digital assets individually.
Benefits and accessibility of COIN50
The COIN50 has been designed to be accessible to a wide variety of investors. Through the Coinbase Advanced platform, users can easily access perpetual futures that allow them to trade the index without needing to directly purchase each of the 50 underlying assets.
This option is ideal for those looking for an efficient way to diversify their cryptocurrency exposure without having to manage multiple transactions.
Coinbase has worked closely with MarketVector, a regulated index administrator, to ensure that the COIN50 meets the highest standards of security and reliability.
Furthermore, the fact that all assets included in the index are accessible on the Coinbase platform is a point in favor of transparency and trust, since investors can access these assets easily and with the security offered by one of the largest platforms in the world.
The launch of this index is an important step towards the institutionalization of the cryptocurrency market, offering a tool that makes it easier for institutional and sophisticated investors to access digital assets in a more regulated and structured way.
As the cryptocurrency market continues to mature, initiatives like COIN50 are helping to set new standards for investment and monitoring in a sector that is still growing.