THE Coin basethe largest cryptocurrency exchange in the US, launched called an index Coinbase 50 Index (COIN50) next Tuesday (12), and serves as a competitor to the traditional S&P 500, which brings together the 500 largest companies in the US.
According to a document published by the broker, the index consists of 50 currencies, but the weight of each currency is different.
As an example: today Bitcoin represents 50.3% of the index. Be next Ethereum (27.5%), Solana (6.4%), XRP (3.1%) and Dogecoin (1.5%). Added together, the remaining 45 cryptocurrencies have a weight of 11.2%.
The index will be rebalanced regularly to adapt to market realities. Looking further, it is worth noting that other companies had already created similar indices. An example is the CoinDesk 20 Index (CD20)also with its own listing criteria and weight.
Coin50, Coinbase’s cryptocurrency index, can be traded through the broker itself
One of the differences with other indices is that the Coin50 can be traded on Coinbase’s proprietary futures market with a leverage of up to 20 times.
Of the 50 cryptocurrencies that make up the index, the majority are linked to the smart contracts sector (Ethereum, Solana and others), followed by DeFi. Apparently, Bitcoin is the only asset emerging as a store of value, without any competitors.
According to data from Coinbase, the Coin50 had a return of 202.8% between the beginning of January 2021 and the end of October 2024. For comparison: the Bitcoin only rose 143.7% in the same period and the S&P500 seems far behind, with a gain of only 51.9%.
In any case, the data also shows that drops are huge in the cryptocurrency market when they occur. In its worst month, Coin50 fell 41%, about 4 times more than SPX. In other words: an investment for those who like risks.
āWhile the Coinbase 50 Index currently covers approximately 80% of the total cryptocurrency market cap, this is just the beginningāwrote Coinbase.
Cryptocurrencies are piggybacking on Bitcoin and the Trump administration
Bitcoin has already risen by 32.4% since the election of Donald Trump last Tuesday (5). Other cryptocurrencies are also taking advantage of the moment and showing good gains.
The biggest examples are the Dogecoinwhich one increased by 178% in the same periodand the Cardano (ADA)which one increased 102%. At the time of writing, both are operating with a small correction from their recent all-time highs.
Another behavior worth keeping an eye on is ETF applications for these altcoins. As Trump is expected to replace Gensler as chairman of the SEC with another, more industry-friendly director, the number of ETFs and approvals is expected to increase.
For example, a manager submitted an application for an ETF on Tuesday (12). Hedera (HBAR). Cryptocurrency is active Daily increase of 22% and 49% weekly, which is one of the highlights of the day.
Finally, this is expected to happen regularly, which could yield returns for the most daring investors who are alert to trends and changes in US politics.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
