Circle Targets Cryptocurrency Rookies With Coin Investing App

Circle Internet Financial Ltd., a mobile-payments and cryptocurrency-trading firm backed by Goldman Sachs Group Inc., is making a push to become the go-to destination for first-time Bitcoin buyers.

The Boston-based firm is introducing a feature Tuesday called “Buy the Market,” which allows users of its Circle Invest app to purchase all seven digital coins offered on its platform at the same time.

“Buy the Market” on the Circle Invest app

Source: Circle Internet Financial

Customers can invest as little as $1, and their funds will automatically be spread across the tokens, weighted by market value. Circle builds in a 1 percent spread between the buy and sell prices, which is how it generates revenue, Chief Executive Officer Jeremy Allaire said. The coins are Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Zcash and Monero.

“The vast majority of invested capital by individual investors and retail investors — the vast majority of any asset class, whether it’s stocks or bonds or currencies or crypto — is more passively managed,” he said in an interview Monday. “If you’re a newbie and you feel like you’ve missed out or you’re interested now in investing in this category, this is a tried-and-true model that’s worked in retail investing.”

Other virtual-currency companies have launched similar products. Crypto exchange Coinbase said in March that it was rolling out an index fund for accredited investors that tracks the four coins on its marketplace. But unlike Coinbase, Circle has set a low investment minimum and is offering its product to retail buyers, opening up to a larger pool of potential investors, Allaire said.

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