Coinbase has just launched a new index called the Coinbase 50 Index (COIN50). This index is designed to help you track the digital assets market.
According to Coinbase, the COIN50 is a regulated benchmark. It represents the 50 largest crypto assets available on their platform. These assets meet specific criteria for token economics, blockchain design, and security.
To qualify for the index, an asset can’t be tied to other digital currencies. It also needs to have most of its tokens in public circulation and must not have any known security issues.
The Coinbase 50 Index is rebalanced every quarter. It’s a market cap-weighted index, which means it reflects the size of each asset in the market. Traders can use this index to see how the broader crypto market is performing and to measure their own returns.
Right now, the COIN50 covers about 80% of the total crypto market cap. Coinbase plans to create a broader index as the market grows and changes.
This approach helps ensure that the indices can adapt to the industry, providing important price discovery. It also keeps the index relevant for the evolving cryptoeconomy.
If you’re an eligible institutional or retail user, you can trade the index through a COIN50 perpetual futures contract. You can find this on Coinbase International Exchange and Coinbase Advanced. However, keep in mind that this contract isn’t available for traders in the US, UK, and Canada.
Coinbase is also looking into more ways to give traders access to the index. Stay tuned for updates!