Seems dishonest to not use a linear scale on this graph:
https://am.coinbase.com/index
Also, the minimum investment and management fee found here don't look too appealing:
Minimum Investment: $10,000
2% annual management fee
Also, the minimum investment and management fee found here don't look too appealing:
Minimum Investment: $10,000
2% annual management fee
Its clearly is about market information. If they were to capture enough funds in the index, they can straight up manipulate the market to choose the coin they want to release: they can charge whatever they want for the next coin release upfront, no cost to them or to the coin seller.
It truly is the era of the pump&dumps
Using a log scale implies that the growth rate is dependent on scale.
Depending on your opinion of the market, choose whichever you wish
The risk is higher, the volatility is higher, liquidity is lower, the overall market is at an early stage of development.
For such asset classes, paying a fat premium is common.
Also maybe by being one of the first to offer such a thing, they can charge higher management fees.
Well if you own the exchange the effective transaction costs are 0.
So? We're talking about an index by an exchange. I seriously doubt it that they'd actually transact on the blockchain; and if they would, that's just plain stupid, because it only increases costs without any benefit for the investors (who still don't actually own their coins).
For alpha, or the attempted pursuit of it (or a specific risk-return and liquidity profile). The point of index funds is their lower cost.
What would be a normal transaction cost by financial standards?
I figured that the comment I was originally responding to made it sound like transaction costs are a technical reason for the management fees being high.