On the heels of its $110M Series E round last week, Circle are launching a new “Buy the Market” feature for Circle Invest. With the new feature, users will be able to decide how much they want to invest and Circle will distribute it across the seven coins supported on Circle Invest. The listed coins are:
Bitcoin (available on Coinbase) (BTC)
Bitcoin (available on Coinbase) Cash (BCH)
Ethereum (available on Coinbase) (ETH)
Ethereum (available on Coinbase) Classic (ETC)
Litecoin (available on Coinbase) (LTC)
Zcash (ZEC)
Monero (XMR).
Users to do have to decide on the allocation themselves, instead, Circle Invest allocate percentages in line with the current market cap of the assets. For example, if Bitcoin (available on Coinbase)’s market cap accounted for 60% of the combined market cap of the seven assets in the Circle portfolio, 60% of the investment would be allocated to Bitcoin (available on Coinbase).
Circle Invest says its fees are lower than those offered by competitors – without high minimums or 3% management fees typical in the market. For a $500 investment, for example, Circle says its markup would be $5.00 – around 50% of the cost of using a similar service on Coinbase.
Circle acknowledge that its markup makes coin prices slightly higher than the average price found on various other exchanges at that time, and when selling coin back to Circle, the price offered is slightly lower. Circle charges no additional services fees, however.
The announcement follows news last week that Circle plans to release a tokenized US dollar coin this summer and has formed a partnership with Bitmain – who were a lead investor in Circle’s recently closed $110M venture capital raise.
In addition to Circle Invest, the Circle group’s portfolio of blockchain businesses includes OTC crypto trading desk Circle Trade, the Poloniex exchange and the Circle Pay social payments app.