“In this era of rapid technological advancements, we see Web3 as a force that will redefine the way that people live, invest, and transact.”
eToro, the global trading and investing platform, has partnered with Index Coop, a Decentralized Autonomous Organization (DAO), to launch a new crypto Smart Portfolio.
Backed by Sequoia Capital, Index Coop is renowned for its expertise in on-chain structured products. The partnership aims to offer retail and institutional investors alike an opportunity to gain exposure to some of the most exciting sectors in the crypto universe—Bitcoin, Ethereum, DeFi, and the Metaverse.
30% Bitcoin + 30% Ethereum + 30% Pulse Index + 10% Metaverse Index
“In this era of rapid technological advancements, we see Web3 as a force that will redefine the way that people live, invest, and transact,” said Dani Brinker, Head of Investment Portfolio at eToro. “With this partnership, we are excited to provide investors with another way to invest in the Web3 revolution.”
The new crypto Smart Portfolio is meticulously designed to capture market trends in four key sectors. It allocates 30% each to Bitcoin and Ethereum, the juggernauts of the crypto world, with the remaining 40% being split between DeFi Pulse Index (30%) and Metaverse Index (10%). The DeFi Pulse Index tracks a myriad of applications like decentralized exchanges, money markets, and synthetic assets, featuring tokens such as Uniswap, Aave, and Synthetix. The Metaverse Index, on the other hand, aims to capture the virtual economies through tokens from leading projects like Sandbox and Decentraland.
One of the standout features of this Smart Portfolio is its commitment to adapt to market dynamics through quarterly rebalancing. Leveraging Index Coop’s analytics and insights, the asset allocation within the portfolio will be adjusted based on market capitalization, maintaining a maximum allocation of 30% to any asset to ensure diversification.
Not available to U.S. clients
“At Index Coop, we are dedicated to advancing the world of Web3 and decentralized finance,” said Jordan Tonani, Head of Institutions at Index Coop. “Partnering with eToro, we look forward to delivering valuable insights and crypto strategies to its users, contributing to the growth and adoption of Web3 technologies.”
The new Smart Portfolio is an enticing proposition for investors seeking diversified exposure to the crypto ecosystem. Starting from an initial investment of just $500, investors gain access to a range of tools and charts to track performance, in addition to eToro’s social feed for real-time updates on sector developments. However, it’s worth noting that this offering is not available to U.S. users, potentially limiting its market reach.
This partnership comes at a time when the market size of Web3 is projected to hit $81.5 billion by 2030. It represents a significant step forward in making decentralized finance more accessible, thereby accelerating the mass adoption of Web3 technologies. The collaboration between eToro and Index Coop effectively bridges the gap between traditional finance and the rapidly evolving world of DeFi, offering a comprehensive, yet flexible investment vehicle for those looking to take part in the next frontier of financial innovation.
