eToro, a trading and investing platform, has joined forces with Index Coop, a decentralized autonomous organization (DAO), to introduce a crypto Smart Portfolio designed to provide exposure to the emerging Web3 ecosystem.
The portfolio, aptly named ‘Index-Coop,’ is strategically designed to encompass four key sectors: Bitcoin, Ethereum, decentralized finance (DeFi), and the Metaverse. Backed by the substantial support of Sequoia Capital, Index Coop has solidified its position as a pioneer in the realm of on-chain structured products within the burgeoning DeFi sector.
These structured products encompass an array of financial instruments such as yield products, indices, derivatives, do-it-yourself (DIY) portfolios, and automated proprietary strategies, all built on the Ethereum blockchain.
“In this era of rapid technological advancements, we see Web3 as a force that will redefine the way that people live, invest, and transact. It is a rapidly growing ecosystem set to reach a market size of USD 81.5 billion by 2030(1)”, explained 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.”
eToro and Index Coop: Embracing Web3, DeFi, and the Metaverse
The Index-Coop portfolio is composed to provide a balanced exposure to these four essential sectors. It consists of Bitcoin (30%), Ethereum (30%), and a diversified basket of assets mirroring the allocation of two prominent Index Coop indices: the DeFi Pulse Index (30%) and the Metaverse Index (10%).
The DeFi Pulse Index tracks a variety of decentralized applications, including decentralized exchanges, money markets, synthetic assets, and staking. This index encompasses tokens from notable projects such as Uniswap, Aave, and Synthetix.
On the other hand, the Metaverse Index captures the dynamic trends in entertainment, social interactions, and business activities occurring within virtual economies. It includes tokens from leading projects like Sandbox and Decentraland.
To ensure best possible alignment with the market dynamics, the Index-Coop portfolio will undergo quarterly rebalancing, leveraging Index Coop’s extensive analysis and insights.
The weighting of each of the four constituents within the portfolio will be adjusted based on their respective market capitalizations, with a maximum allocation cap of 30% to promote diversification.
Smart Portfolios, such as Index-Coop, offer investors an opportunity to explore various market themes by bundling together multiple assets under a predefined methodology. Employing a passive investment approach, these portfolios provide long-term investment solutions with diversified exposure.
The initial investment threshold for the Index-Coop portfolio begins at USD$500, making it accessible to a wide range of investors. To monitor the portfolio’s performance, investors can leverage an array of tools and charts. Additionally, eToro’s social feed will keep them informed about the latest developments in the ever-evolving Web3 sector.
The collaboration between eToro and Index Coop exemplifies the growing interest and commitment to Web3, DeFi, and the Metaverse, as investors seek to capitalize on the transformative potential of blockchain technology and virtual economies.
