eToro and Index Coop Partner on New Crypto Portfolio

Investment platform eToro is set to launch a fresh crypto Smart Portfolio in collaboration with Index Coop, a decentralised autonomous organisation (DAO). The portfolio is intended to provide investors with exposure to Web3.

Four Key Sectors Covered

The portfolio, known as ‘Index-Coop’, will cover four significant sectors: Bitcoin, Ethereum, decentralised finance (DeFi), and the Metaverse. Index Coop, a longstanding provider of on-chain structured products and backed by Sequoia Capital, is included in the new DeFi sector. This sector encompasses yield products, indices, derivatives, DIY portfolios, and automated proprietary strategies built on the Ethereum blockchain.

Opening Web3 Investment Opportunities

The Head of Investment Portfolio at eToro, Dani Brinker, anticipates Web3 will reshape how people live, invest, and transact. With the Web3 ecosystem expected to reach a market size of USD 81.5 billion by 2030, the partnership aims to present investors with another method to invest in the Web3 revolution.

The portfolio consists of bitcoin (30 per cent), ether (30 per cent), and a basket of assets that reflect the allocation of two of Index Coop’s indices, the DeFi Pulse Index (30 per cent) and the Metaverse Index (10 per cent).

Portfolio Rebalancing and Diversification

The portfolio will undergo quarterly rebalancing to maintain optimum alignment with market dynamics, backed by Index Coop’s analysis and insights. Each of the four constituents’ weighting within the portfolio will be adjusted based on its market capitalization. A maximum allocation of 30 per cent is set for each to ensure diversification.

Advancing Web3 and DeFi

Jordan Tonani, Head of Institutions at Index Coop, highlighted the company’s dedication to advancing Web3 and decentralised finance. In collaboration with eToro, Index Coop aims to deliver valuable insights and crypto strategies to users, contributing to the growth and adoption of Web3 technologies.

Smart Portfolios for Diverse Exposure

Smart Portfolios offer exposure to various market themes. They bundle several assets under a defined methodology and employ a passive investment approach. This provides long-term investment solutions that offer diversified exposure. The portfolio, not available to US users, requires an initial investment starting from USD$500. Investors can access tools and charts to track the portfolio’s performance, and eToro’s social feed will keep them informed on developments in the sector.