Broker eToro has announced a partnership with Index Coop, a decentralized autonomous organization (DAO), to offer its clients a new crypto smart portfolio that will provide access to Web3.
The portfolio called 'Index-Coop' will cover four key sectors: Bitcoin, Ethereum, Decentralized Finance (DeFi), and Metaverse.
Thanks to Sequoia Capital's backing, Index-Coop is a key product provider of structured products within the DeFi network chain, including yield products, indices, derivatives, DIY portfolios, and automated proprietary strategies built on the Ethereum blockchain, according to the broker's website.
"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)," 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," he summarized.
The main feature of the portfolio is that it consists of 30% Bitcoin, 30% Ether, and a basket of assets reflecting the allocation of two Index Coop indices: the DeFi Pulse Index (30%) and the Metaverse Index (10%).
The DeFi Pulse Index tracks not only decentralized exchanges but also money markets, synthetic assets, rates, and tokens such as Uniswap, Aave, and Synthetix. The Metaverse Index captures entertainment, social, and business trends taking place in the virtual economy with tokens from leading projects such as Sandbox and Decentraland.
eToro emphasized that the portfolio will be rebalanced quarterly to maintain optimal alignment with market dynamics. The share of each of the four components of the portfolio will be adjusted based on their market capitalization, with a maximum allocation of 30% to each to ensure diversification.
"At Index Coop, we are dedicated to advancing the world of Web3 and decentralized finance. We believe that DeFi is the future, and it’s up to us to make sure it includes everyone. 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," said Jordan Tonani, Head of Institutions at Index Coop, commenting on the partnership.
Initial investments start at $500, and investors will have access to tools and charts to track portfolio performance, as well as an eToro social feed to keep them updated on developments in the sector.
It should be noted that Index-Coop is not available to U.S. users.
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