Leading trading and investment platform eToro has joined forces with the decentralized autonomous organization Index Coop to introduce an innovative Web3 crypto Smart Portfolio.
This groundbreaking portfolio encompasses four key sectors: Bitcoin, Ethereum, decentralized finance (DeFi), and the Metaverse. Index Coop, with the backing of Sequoia Capital, has established a significant presence in the realm of on-chain structured products within the DeFi space. This sector offers a wide array of financial products, including yield offerings, indices, derivatives, DIY portfolios, and automated proprietary strategies, all built on the Ethereum blockchain.
eToro representatives have underscored the escalating impact of Web3 in light of rapid technological advancements. Web3 is viewed as a transformative force that will reshape the way people live, invest, and conduct transactions. eToro’s projections indicate that this sector is poised to reach a market size of USD 81.5 billion by 2030. The eToro and Index Coop partnership aims to provide investors with an additional avenue to participate in the Web3 revolution.
The Index-Coop portfolio is meticulously structured, with a 30% allocation to both Bitcoin and Ethereum, along with a diversified basket of assets mirroring the allocation of two of Index Coop’s own indices: the DeFi Pulse Index (30%) and the Metaverse Index (10%). The DeFi Pulse Index monitors a range of applications, including decentralized exchanges, money markets, synthetic assets, and staking, featuring tokens such as Uniswap, Aave, and Synthetix. Meanwhile, the Metaverse Index keeps tabs on trends in entertainment, social interactions, and business activities within virtual economies, incorporating tokens from projects like Sandbox and Decentraland.
This portfolio benefits from the expertise and insights of Index Coop and is set to undergo quarterly rebalancing to ensure alignment with market dynamics. The weight of each constituent within the portfolio is adjusted based on its market capitalization, with a maximum allocation of 30% for diversification.
Index Coop officials underscored their dedication to advancing Web3 and decentralized finance, emphasizing that DeFi is integral to the future, with inclusivity being a key factor. The partnership with eToro aims to provide users with valuable insights and crypto strategies, contributing to the growth and adoption of Web3 technologies.
Smart Portfolios, such as the one developed by Index Coop, enable exposure to various market themes by bundling multiple assets following a predefined methodology. Employing a passive investment approach, they offer long-term investment solutions with diversified exposure. The minimum initial investment is USD 500, and investors have access to tools and charts to monitor portfolio performance. It’s important to note that this offering is not accessible to users in the United States.