eToro Partners with 21Shares to Launch New Crypto Portfolio for Retail Investors
eToro Partners with 21Shares to Launch New Crypto Portfolio for Retail Investors
Crypto trading firm eToro has teamed up with 21Shares, the world’s largest issuer of crypto exchange-traded products (ETPs), to introduce a new crypto portfolio specifically designed for retail investors. The portfolio, named 21Shares-Flows, aims to provide retail investors with a dynamic and data-driven approach to crypto investing.
According to a press release issued on Tuesday, 21Shares-Flows holds actual cryptoassets and leverages insights derived from monthly flows into European crypto ETPs. The portfolio is segmented by underlying assets, including popular cryptocurrencies like Bitcoin, Ethereum, and various altcoins.
One of the key features of 21Shares-Flows is its ability to adjust allocation based on market dynamics. By tracking investor preferences and market trends, the portfolio can reallocate its assets to align with emerging trends and current sentiment. For example, if Bitcoin ETPs experience significant inflows, the portfolio’s allocation to Bitcoin will be increased accordingly.
Dani Brinker, Head of Investment Portfolios at eToro, commented on the partnership, stating, “Our latest research shows that retail investors around the world are more likely to increase their allocation to crypto than any other asset class. This portfolio provides investors with a unique opportunity to capitalize on the growth potential of cryptoassets in a structured and data-driven manner.”
The 21Shares-Flows portfolio consists of 25 cryptoassets, including popular cryptocurrencies like Bitcoin and Ethereum, as well as newer additions such as Celestia. It undergoes monthly rebalancing to ensure alignment with market dynamics, with the sum of flows for each underlying asset computed and divided by the total market flows to determine updated weights.
Hany Rashwan, CEO of 21Shares, expressed excitement about the collaboration with eToro, stating, “This collaboration leverages our expertise in crypto ETPs and eToro’s innovative Smart Portfolios platform to offer investors a transparent and data-driven approach to navigating the crypto market.”
In related news, 21Shares recently announced that it has surpassed $5 billion in Assets Under Management (AUM) amid a market rebound. The company has experienced rapid growth over the past few years, with collaborations with Ark Invest and initiatives to enhance transparency for their ARK 21Shares Bitcoin ETF.
Overall, the partnership between eToro and 21Shares aims to provide retail investors with a seamless and efficient way to gain exposure to the crypto market through a diversified and data-driven portfolio.
