Coinbase launches COIN50 index, tradable as a perpetual future with up to 20x leverage

Crypto exchange operator Coinbase has launched COIN50, a new benchmark designed for crypto traders. The index is also available as a perpetual futures contract with up to 20x leverage.

The COIN50 index tracks the top 50 digital assets listed on Coinbase that meet the index's fundamental inclusion criteria, the company said Tuesday. The launch comes as bitcoin price approaches $90,000, fueled by a post-election rally following Donald Trump's victory last week. The global crypto market cap has surged to over $3 trillion, up from $2.3 trillion on Nov. 5 — an $870 billion increase in just one week.

It remains "early" days for crypto, according to David Duong, head of research at Coinbase. With the current global crypto market cap around $3 trillion, Duong noted in a statement that it still represents only about 3% of the total global equity market cap, which exceeds $101 trillion. "We see investor demand for a benchmark that adjusts to lasting shifts in crypto trends and captures a broader representation of the market," Duong said. "One reason why equity index investing has become so popular is that it provides an easy way to gain broad diversified exposure and capture structural shifts in the market trend."

The Coinbase 50 Index (COIN50)

Coinbase developed the COIN50 index in partnership with Coinbase Asset Management and Market Vector Indexes. They previously built the Coinbase Core Index (COINCORE) and Coinbase Size Tilt (COINTILT). The two indices track the performance of a market-capitalization-weighted basket of the largest and most liquid digital assets that fulfill the fundamental and market eligibility criteria.

As for the new COIN50 index, its assets are weighted by market capitalization, with the largest asset capped at 50%. As of Sept. 30, the index is weighted as follows: Bitcoin makes up 50.3%, ether accounts for 27.5%, solana represents 6.4%, XRP holds 3.1% and dogecoin comprises 1.5%. The remaining 45 assets in the index collectively total 11.2%.

Duong emphasized that the COIN50 index encompasses all major sectors in the space, unlike existing crypto indices, which tend to be "heavily concentrated" in crypto infrastructure (e.g., overexposure to Layer 1 or smart contract platform tokens). The COIN50 index selects assets based on fundamental criteria such as token economics, blockchain architecture and security, he said.

Duong compared the COIN50 index to the early days of the S&P 500, originally called the S&P 90. "The Coinbase 50 Index is aspirational, as was the start of the S&P 90 Index in 1923 — before it grew into the S&P 500 in 1957, becoming the global bellwether," he said. "The capitalization of the index, at 80% of the crypto market total, is similar to the share of the S&P 500 Index relative to the overall U.S. market."

Trading COIN50 as a perpetual future

Starting today, eligible traders can trade the COIN50 index through a COIN50 perpetual futures contract (COIN50-PERP) with up to 20x leverage, Coinbase said. This will be available on Coinbase International Exchange for eligible institutional users and on Coinbase Advanced for eligible retail users.

A perpetual future is a type of derivatives contract that allows traders to speculate on the price of an asset or index without an expiration date. This means traders can hold their positions indefinitely, as long as they meet the margin requirements. Profits or losses in a perpetual future depend on the price movement of the asset or index. If the price moves in the trader's favor, they make a profit; if it moves against them, they incur a loss.

One of the key features of perpetual futures is the use of leverage, which allows traders to control larger positions with a smaller initial investment. This amplifies both the potential for profits and the risks of losses.

The COIN50-PERP contract will be available only to users in eligible jurisdictions outside the U.S., the U.K. and Canada, Coinbase said.

"We are exploring additional ways to allow users to gain exposure to the index," the company added.

Earlier this year, The Block and Wintermute backed GMCI, a new company offering index products. The GMCI 30 index, which tracks the top 30 crypto assets, is up about 32% in the last seven days.