Equity Index Comes to Coinbase, Will Include Mag 7 and Crypto ETFs

Coinbase, one of the three largest spot crypto exchanges by trading volume, has announced its upcoming stock and crypto stock index, The Mag7 and Crypto Equity Index Futures, which will be launched on Monday, September 22. This financial product will be the first of its kind to offer a hybrid combination of exposure to stocks and crypto exchange-traded funds (ETFs).

Although several industry peers, such as Krakena, Robinhooda, Bitgeta, and others, offer stocks in the form of xStocks, no other company has yet begun to offer this dual approach. Coinbase Derivatives, which already offers a diverse range of instruments for investors, including energy instruments and metals, is expected to introduce the index in just over 2 weeks.

Brian Armstrong, the exchange’s CEO, announced the news on X, calling their trading platform ‘the exchange of everything’.

Traders will benefit from the experience of the Seven Magnificent stocks without having to purchase them directly, along with two established BlackRock ETFs for bitcoin and ethereum, all in one futures contract product.

Moreover, the combination of assets in the upcoming index, along with an already substantial list of instruments, will expand access and efficiency for investors, opening doors for new trading strategies.

Index Features

The well-known Mag 7, consisting of Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), Meta (META), and Tesla (TSLA), will fill part of the stocks.

Additionally, BlackRock’s ETFs will be iShares Bitcoin Trust ETF (IBIT) and iShares Ethereum Trust ETF (ETHA). Finally, shares of Coinbase (COIN) will also be available for purchase.

COIN, with data taken at the time of writing, is currently trading around 303 dollars, with a slight decline of 0.41 percent in the last 24 hours, according to Google Finance, but is still up over 22 percent since the beginning of the year.

The index will also boast an equal-weight methodology, with each of the 10 available products representing its share of 10 percent. As prices change, the balance may fall below 10 percent, but there will be quarterly rebalancing, which will reset the weights. The market research firm MarketVector will be the official index provider.

Mag7 and Crypto Equity Index Futures will be cash-settled monthly contracts, with each contract representing one dollar of the index, according to information provided by Coinbase so far.