Every single time Coinbase lists a new coin, its market cap goes through the roof, even Ethereum Classic (ETC),which has basically no community or developer support, value skyrocketed after being listed.

For this reason, I will try to build a home-made index fund (ETF) based on the ERC20 tokens that Coinbase will add:

On March 26th, 2018, Coinbase announced their intention to add support for ERC20 tokens, since then I’ve been trying to figure out which ERC20 token was the most likely to be listed, but it became very clear after May 23, 2018: When Coinbase acquired the ERC20 decentralised exchange (dex) Paradex

Paradex being a ERC20 token exchange, I guess this move is a acquihire of the Paradex team to work on the ERC20 integration at Coinbase (Paradex’s CEO and other members of Paradex are now working at Coinbase, this is a clear sign of acquihire)

We can expect Coinbase to list the tokens listed on Paradex, so this is how it goes:

We can expect BAT, DAI, MKR, NMR, OMG, REP, REQ, SNT and ZRX to be listed.

In order to build an index fund weighted by market capitalization, this is a snapshot of how you should allocate your funds between the different ERC20 tokens in order to diversify your investment, taken on the Jun 25, 2018:

(DAI being a stablecoin, it can be removed from the index)

To keep it easy :

34% on OMG

15% on ZRX

14% on REP

14% on MKR

11% on BAT

8% on SNT

2% on REQ

0.5% on NMR

In order to build this index, you can buy those tokens on Paradex, or :

OMG, ZRX, REP, BAT, SNT, REQ on Binance

MKR on OasisDEX

NMR on Bittrex

Feel free to reach out on Twitter if you have comments or questions.