Trading and investing platform eToro has partnered with decentralised autonomous organisation Index Coop to launch a new Web3 crypto Smart Portfolio. This portfolio encompasses four core sectors: Bitcoin, Ethereum, decentralised finance (DeFi), and the Metaverse.

Index Coop, backed by Sequoia Capital, has a notable presence in the world of on-chain structured products within the DeFi realm. This sector encompasses a range of financial offerings, including yield products, indices, derivatives, do-it-yourself portfolios, and automated proprietary strategies, all built on the Ethereum blockchain. Representatives from eToro emphasised the growing impact of Web3 in light of rapid technological advancements.

Web3 is seen as a transformative force that will reshape how people live, invest, and transact. According to eToro, it is projected to reach a market size of USD 81.5 billion by 2030. The partnership between eToro and Index Coop aims to provide investors with an additional avenue to participate in the Web3 revolution.

The Index-Coop portfolio structure The Index-Coop portfolio is structured with a 30% allocation each to Bitcoin and Ethereum, along with a basket of assets reflecting the allocation of two of Index Coop's own indices: the DeFi Pulse Index (30%) and the Metaverse Index (10%). The DeFi Pulse Index monitors applications such as decentralised exchanges, money markets, synthetic assets, and staking, featuring tokens such as Uniswap, Aave, and Synthetix. The Metaverse Index tracks trends in entertainment, social interactions, and business activities occurring in virtual economies, including tokens from projects like Sandbox and Decentraland.

This portfolio benefits from the expertise and insights of Index Coop and will undergo quarterly rebalancing to ensure alignment with market dynamics. The weight of each constituent within the portfolio is adjusted based on its market capitalisation, with a maximum allocation of 30% each to ensure diversification. Officials from Index Coop underscored the commitment to advancing Web3 and decentralised finance, emphasising that DeFi is integral to the future and inclusivity is key.

The partnership with eToro aims to offer valuable insights and crypto strategies to users, contributing to the growth and adoption of Web3 technologies. Smart Portfolios such as the Index-Coop enable exposure to various market themes by bundling multiple assets according to a defined methodology. Employing a passive investment approach, they provide long-term investment solutions that offer diversified exposure.

The minimum initial investment is USD 500, and investors have access to tools and charts to track the portfolio's performance. Additionally, eToro's social feed will keep users informed about developments in the sector. It's also worth noting that this offering is not available to users in the United States.

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