eToro Partners with 21Shares for Data-Driven Crypto Investment Portfolio

Tuesday, 23/04/2024 | 17:59 GMT by Jared Kirui

The portfolio holds real crypto assets and utilizes data from monthly inflows into European crypto ETPs.

Its investment strategy relies on tracking investor preferences and market sentiment.

The trading and investment platform eToro has partnered with 21Shares, the issuer of crypto exchange-traded products (ETPs), to introduce a new investment portfolio that promises a data-driven approach to crypto investing.

Data-Driven Approach to Crypto Investing

Dubbed the 21Shares-Flows, the new investment portfolio holds real crypto assets and leverages insights from monthly inflows for European crypto ETPs. It is segmented by underlying assets, such as Bitcoin, Ethereum , and various altcoins. According to the press release, the portfolio aims to align with emerging trends by tracking investor preferences and market sentiment.

Dani Brinker, the Head of Investment Portfolios at eToro, mentioned: "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 crypto assets in a structured and data-driven manner. We are looking forward to bringing 21Shares’ industry-leading insights to our users."

The new offering adjusts its allocation to different crypto assets based on market sentiment by analyzing monthly inflows into European crypto ETPs. For instance, if Bitcoin ETPs experience significant inflows, the allocation to Bitcoin within the portfolio increases accordingly.

Enhancing Crypto Investment

eToro's Smart Portfolios, including the 21Shares-Flows portfolio, offer exposure to various financial instruments. With a minimum initial investment of USD$500, investors can access tools and charts to track the portfolio's performance, the company noted. However, the services are not available to US traders.

Currently, eToro is actively seeking authorization to operate in Singapore as part of its efforts to strengthen its presence in the Southeast Asian market. The broker recently submitted an application to obtain a license from the Monetary Authority of Singapore, Finance Magnates reported.

Despite being headquartered in Israel, eToro has a global presence with regulatory registrations in various jurisdictions, including the United Kingdom and the United Arab Emirates. While eToro's expansion efforts are met with enthusiasm, regulatory challenges persist. This includes recent advisories from regulators, such as the Philippines' Securities and Exchange Commission.