Online brokerage firm eToro has joined forces with Index Coop, a decentralized autonomous organization (DAO), to unveil a novel crypto Smart Portfolio designed to provide exposure to Web3 technologies.
The Index-Coop portfolio will encompass four crucial sectors: Bitcoin, Ethereum, decentralized finance (DeFi), and the Metaverse.
With backing from Sequoia Capital, Index Coop stands as one of the pioneering providers of on-chain structured products within the burgeoning DeFi sector. This encompasses yield products, indices, derivatives, DIY portfolios, and automated proprietary strategies built on the Ethereum blockchain.
The portfolio comprises bitcoin (30 percent), ether (30 percent), and a collection of assets mirroring the allocation of two of Index Coop’s indices: the DeFi Pulse Index (30 percent) and the Metaverse Index (10 percent). The DeFi Pulse Index monitors applications like decentralized exchanges, money markets, synthetic assets, and staking, and includes tokens like Uniswap, Aave, and Synthetix. The Metaverse Index captures the trends in entertainment, social interactions, and business activities within virtual economies through tokens from prominent projects such as Sandbox and Decentraland.
Utilizing Index Coop’s analytical prowess and insights, the portfolio will undergo quarterly rebalancing to uphold an optimal alignment with market dynamics. The weighting of each of the four constituents within the portfolio will be adjusted based on their market capitalization, with a maximum allocation of 30 percent each to ensure diversification.
Smart Portfolios provide exposure to various market themes. By bundling together multiple assets under a defined methodology and employing a passive investment approach, they furnish long-term investment solutions that offer diversified exposure. The initial investment starts from USD $ 500, and all investors can access tools and charts to monitor the portfolio’s performance. Simultaneously, eToro’s social feed will keep them abreast of developments in the sector. Please note that this offering is not available to US users.