eToro, the trading and investing platform, has joined forces with Index Coop, a decentralized autonomous organization (DAO), to introduce a new cryptocurrency Smart Portfolio designed to provide exposure to the Web3 ecosystem. This portfolio, named ‘Index-Coop,’ will encompass four primary sectors: Bitcoin, Ethereum, decentralized finance (DeFi), and the Metaverse.
Index Coop, backed by Sequoia Capital, is a well-established provider of on-chain structured products, operating in the burgeoning DeFi sector. This sector encompasses yield products, indices, derivatives, DIY portfolios, and automated proprietary strategies built on the Ethereum blockchain.
Web3, seen as a powerful force that will reshape how people live, invest, and transact, is a rapidly growing ecosystem expected to reach a market size of $81.5 billion by 2030. With this partnership, eToro aims to offer investors another avenue for participating in the Web3 revolution.
The Index-Coop portfolio comprises bitcoin (30%), ether (30%), and a basket of assets aligned with the allocation of two of Index Coop’s indices, the DeFi Pulse Index (30%) and the Metaverse Index (10%). The DeFi Pulse Index tracks various applications like decentralized exchanges, money markets, synthetic assets, and staking, including tokens such as Uniswap, Aave, and Synthetix. The Metaverse Index focuses on trends in virtual economies, encompassing tokens from leading projects such as Sandbox and Decentraland.
The portfolio will undergo quarterly rebalancing based on Index Coop’s analysis and insights to maintain alignment with market dynamics. Each constituent’s weighting within the portfolio will be adjusted based on market capitalization, with a maximum allocation of 30% to ensure diversification.
Jordan Tonani, who serves as the Head of Institutions at Index Coop, articulated a dedicated commitment to propelling the Web3 and decentralized finance landscape, placing a strong emphasis on the inclusive involvement of all stakeholders. The collaborative alliance with eToro is foreseen as a means to deliver valuable insights and cryptocurrency strategies to eToro’s user base, thus making a substantial contribution to the expansion and acceptance of Web3 technologies.
The Smart Portfolios offered by eToro provide exposure to various market themes, bundled together under a defined methodology and utilizing a passive investment approach. These portfolios offer long-term investment solutions with diversified exposure. Initial investment in the Index-Coop portfolio starts from $500, and investors can access tools and charts to track its performance, with eToro’s social feed providing updates on sector developments. Please note that this offering is not available to US users.