Coinbase, the biggest crypto exchange in the U.S., has launched its own version of a market benchmark — the Coin50. Think of it as crypto’s answer to the S&P 500.
Reportedly, the index pulls in the top 50 crypto assets by market cap, giving investors a real look at the market’s performance without the noise of individual price swings. It’s Coinbase’s big move to bring a more organized view of crypto to the masses, especially as big institutions keep dipping their toes further into the market.
What is the goal?
Greg Tusar, Coinbase’s Head of Institutional Products, is betting that the Coin50 will become the go-to benchmark for crypto. “What we’re trying to do is establish a benchmark that is not specific to any asset,” he said.
Instead of watching Bitcoin alone, he wants people to gauge the whole market. Bitcoin might still hold the crown, but according to Tusar, it’s time for a broader picture that captures the full scope of crypto assets.
Right now, the Coin50 has Bitcoin making up 50%, with Ethereum at 28%, Solana at 6%, XRP at 3%, Dogecoin at 2%, and 45 other tokens filling out the rest.
The tool; is also designed as an investment product — but only for folks outside the U.S., thanks to regulatory hurdles. It’s set up as a “perpetual future,” which, unlike regular futures, has no expiry date.
U.S. regulations don’t allow this kind of derivative trading onshore, so Coinbase keeps it off-limits for American traders. But Tusar claims that the main goal isn’t just for trading.
He wants the index to help people spot trends, see the bigger picture, and get a sense of market movement — without just staring at Bitcoin’s price as a stand-in for everything.
Moving beyond Bitcoin’s shadow
Why does this matter? Because Bitcoin alone just doesn’t cut it anymore. “I think Bitcoin is used as that benchmark, simply because there isn’t anything else to put in its place,” Tusar admitted.
The Coin50 brings in more players, painting a broader picture of where the crypto market really stands. The way Coinbase sees it, as the market matures, Bitcoin’s dominance will likely shrink, making it less of a reliable indicator for the entire market.
Meanwhile, Bitcoin is seeing a surge in prices, approaching the $90,000 mark. But, as you’d expect in crypto, not everyone’s popping champagne just yet. QCP Capital, a trading firm out of Singapore, warned that we might be looking at an overheated market.
“With BTC’s break of key resistance and its multi-month range, the market is certainly in a state of euphoria,” QCP said in a recent Telegram update. They pointed to funding rates for perpetuals hitting 0.056% — the highest since March — signaling a crowded field of bullish long positions.
They added that, “This movement appears increasingly structural, with capital reallocating from traditional safe havens like gold into BTC. If even 1% of capital from gold were to flow into BTC, it could propel Bitcoin to around $97k, highlighting the potential upside as this narrative continues to solidify.”
Source: https://www.cryptopolitan.com/coinbase-debuts-coin50-index-bringing-stock-market-standards-to-crypto/