Online brokerage eToro and issuer of cryptocurrency trading products (ETPs) 21Shares have partnered to launch a new portfolio called 21Shares-Flows, designed to offer retail investors a dynamic and data-driven approach to crypto investing.
The 21Shares-Flows portfolio contains real cryptocurrencies and leverages information from monthly flows in European crypto ETPs, segmented by underlying assets such as Bitcoin, Ethereum and various altcoins to provide the portfolio’s new allocation. By monitoring investor preferences and market dynamics, the portfolio will align with emerging trends and current sentiment.
For example, if Bitcoin ETPs see significant inflows, the Bitcoin allocation within the portfolio increases accordingly, reflecting market sentiment.
“Our latest research shows that retail investors around the world are more likely to increase their allocation to crypto than any other asset class,” said Dani Brinker, Head of Investment Portfolios at eToro. “This portfolio provides investors with a unique opportunity to capitalize on the growth potential of cryptocurrencies in a structured and data-driven manner. We look forward to bringing 21Shares’ industry-leading insights to our users.”
“We are excited to partner with eToro to introduce the 21Shares-Flows portfolio, which represents a significant advance in crypto investing,” said Hany Rashwan, CEO of 21Shares. “This partnership 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.”
The 21Shares-Flows portfolio includes 25 cryptocurrencies, including Bitcoin, Ethereum and new additions to eToro like Celestia. It is rebalanced monthly to ensure it aligns with market dynamics. The rebalancing process involves calculating the sum of flows for each underlying asset, which is then divided by total market flows to determine updated weights.
You can find the full original breakdown here.
eToro’s range of Smart Portfolios offers exposure to various market themes. By combining multiple assets under a defined methodology and applying a passive investment approach, they provide long-term investment solutions that offer diversified exposure. Initial investment starts at $500 USD and every investor can access tools and charts to track portfolio performance, while eToro’s social media feed will keep them updated on developments in the sector.