Coinbase is launching a weighted index fund for cryptocurrencies.

Much like how the Dow Jones Industrial Average gives a sense of the American economy, this fund tries to reflect major trends in the cryptocurrency market.

“It’s an easy way to get exposure to the crypto assets that we offer on our exchange,” says Coinbase President and COO Asiff Hirji.

Kate Rooney | @Kr00ney

Popular online exchange Coinbase is releasing a weighted index fund for cryptocurrencies.

“It’s a very simple to use, easy way to get exposure to the crypto-assets that we offer on our exchange,” Coinbase President and COO Asiff Hirji told CNBC’s “Fast Money” Tuesday.

The “Coinbase Index Fund” will give accredited U.S. investors exposure to all assets listed on the company’s current exchange, GDAX. The currencies will be weighted based on market capitalization.

Much like how the Dow Jones Industrial Average is a basket of 30 stocks meant to give a sense of the American economy, this fund will try to reflect major trends in the cryptocurrency market.

Coinbase is the leading U.S. marketplace for buying major cryptocurrencies. Its GDAX exchange for professional traders offers bitcoin, bitcoin cash, litecoin and ethereum . It does not currently offer ripple, or XRP. But whenever a new asset is listed, the company said, it will be automatically added to the fund.

Only U.S. residents are legally allowed to invest at this stage, Hirji said, citing SEC oversight as a key reason. He said the company is working on launching more funds in coming months.

Grayscale bitcoin also launched new crypto investing products Tuesday. The company added four new funds that each hold positions in a single cryptocurrency.

Like Coinbase’s product, Grayscale’s new trusts will be offered to accredited investors with a minimum $10,000 investment. But unlike Coinbase, Grayscale has a one-year vesting period.

Hirji pointed to Coinbases’s broader approach, which he said is more tailored to individual investors.

“I think the investors are not going to want to pick specific winners or losers,” Hirji said.

Kate Rooney

Markets Reporter