Circle Invest Announces Three New Bitcoin Collections Based on Company’s Main Goals
Ever since Circle Invest was launched, the platform has tried its best to make cryptocurrency investing as open and as accessible to everyone as possible. Now, Circle Invest is taking it one step further with the release of three new “collections” of multiple cryptocurrency tokens.
These collections will contain an index of crypto coins that are aligned with their overall goal in the crypto space; the first collection being “Platforms”, the second being “Payments” and the third “Privacy”. The option to invest in these cryptocurrency collections is now available through the Circle Invest apps on iOS and Android devices.
Circle’s Senior Vice President Divya Agarwalla took some time to explain the benefits of investing in one of these three cryptocurrency collections. Agarwalla said that crypto projects such as “Bitcoin, Bitcoin Cash, Stellar and Litecoin” are attempting to create “superior payment rails based on blockchain technology so that making payments is as easy, instant and as borderless as sending an email”. This set of crypto coins has been bundled into the “Payments” collection. Agarwalla said that “if customers are passionate about this category of assets and want to invest, they can simply buy the Payments collection”.
The idea behind these collection-based index funds is based on the success of Circle Invest’s “Buy the Market” feature, which almost a third (30%) of its user base took advantage of. The Buy the Market functionality allows crypto investors to buy a small amount of every leading cryptocurrency rather than buy Bitcoin or acquire Ethereum as a single investment. The amount you purchase of each asset is based on the size of each coin’s market cap. This means that if you choose to buy a collection of assets listed in a single touch of a button, you’ll receive more of the higher-cap assets such as Bitcoin, Ripple and Ethereum.
Ms Agarwalla also confirmed that the variety of use cases among new and existing cryptocurrencies will pique the interest of new investors in digital assets. Agarwalla added that Circle Invest will look to “introduce new collections and relevant educational material” to enable users to “invest in the categories that most interest them”.
Circle aren’t the only company to innovate and attempt to make it easier for individuals to buy cryptocurrencies. Leading crypto exchange Coinbase, which currently only allows users to buy Litecoin, Ethereum, Bitcoin, Bitcoin Cash and Ethereum Classic, has also launched its own “collections” feature dubbed “bundles”. The feature is also geared towards those who are just dipping their toes into the world of cryptocurrency investing. Earlier this summer, Coinbase offered its crypto index funds to institutional investors across the United States, with a minimum investment of $250,000 permitted. However, Coinbase Bundles start from only $25, making them an ideal entry level product.
With Bundles, Coinbase users can buy a market-weighted sample of the five available crypto coins on the Coinbase exchange. Using stakes of their choosing, users can obtain a starter pack of cryptocurrencies without paying through the roof. The only negative with the Coinbase Bundles is that, with only five tokens available, it is hardly a diversified portfolio of investments. Circle’s collections offer a much broader starter pack based on your interests in either platforms, payments or privacy.
In addition, another leading crypto index fund, Bitwise, has launched to operate its own ETF labelled Bitwise10. The fund would enable investors to invest in a fund including the top ten largest cryptocurrencies based on market capitalisation.