Continuing to lead the Fintech revolution, we are proud to launch a brand new Smart Portfolio, a first-of-its-kind financial instrument, which will enable anyone to invest in the cryptocurrency market. Cryptocurrencies have been all the rage in the first half of 2017, and demand for them has quadrupled.
“2017 has been a defining year for cryptocurrencies,” said eToro CEO Yoni Assia upon launch. “The global market has now topped $100 billion and the last few months alone have seen an influx of new cryptos entering the space. We believe that $100 billion is a milestone on the way to a Trillion USD market cap, and that a good strategy to capture this growth is by simply investing in the top billion dollar cryptocurrencies on a market cap weighted average.”
Making cryptocurrency investment easy
Despite growing demand, many people are still deterred by the crypto market. Investing in the top cryptocurrencies is an extremely complex process, which requires technical understanding of blockchain technology, and knowledge in risk management and security. Luckily, the new Crypto Smart Portfolio will give anyone a secure way to invest in the crypto market using eToro’s easy-to-use, regulated platform.
The Crypto Smart Portfolio was created by eToro’s investment committee who also actively manages the Smart Portfolio. Therefore, users are able to invest in cryptocurrencies with the confidence that their money is being handled to ensure maximum efficiency. Which is why the Crypto Smart Portfolio undergoes rebalancing every month.
Methodology
The Crypto Smart Portfolio offers a diversified and balanced portfolio, focusing on cryptocurrencies with a market cap of at least $1 billion (with a roundup of up to 2%) and an average daily trading volume of over $20 million throughout the month. The weight of each of the Smart Portfolio’s components is decided according to market cap, with a minimum of 5%.
The Crypto Smart Portfolio will be rebalanced by eToro’s investment committee on the first trading day of each calendar month. Exclusion of a currency from the Smart Portfolio will occur if that currency’s market cap drops below $1 billion, or if its average daily trading volume drops below $20 million.
The overall daily investment amount will be limited for the Crypto Smart Portfolio, on a first-come, first-served basis. When the Smart Portfolio reaches its daily limit, it will close for new investments until it is reopened the following day. The closing of open Crypto Smart Portfolio positions will not be limited and could be done at any time.
Components
Our Crypto Smart Portfolio is designed to integrate every cryptocurrency with a market cap of over a billion USD and daily trading volume of over 20 million USD, and distribute the weights proportionally. This is the second Smart Portfolio offering exposure to the crypto market, joining the Crypto-currency Smart Portfolio which was launched earlier this year.
Explore the Crypto Smart Portfolio
Virtual currencies are highly volatile. Your capital is at risk.
The Crypto Smart Portfolio contains the following cryptocurrencies:
- Bitcoin (BTC): The world’s largest cryptocurrency by market cap, and the first to be introduced on eToro. Bitcoin had an amazing year, more than doubling in value at a certain point, reaching close to $3,000.
- Ethereum (ETH): The world’s second biggest cryptocurrency by market cap. Ethereum skyrocketed from under $10 to over $400 in the first half of 2017. Ethereum is increasingly becoming more widespread and has received the seal of approval from tech giants such as Microsoft and Intel.
- Ethereum Classic (ETC): After the Ethereum community was split in July 2016, Ethereum Classic was created as a smaller version of the currency, true to its original values of decentralization. Since then, this cryptocurrency took on a life of its own, solidified itself as a viable investment option.
- Dash (DASH): This currency was developed with privacy and transaction speeds in mind – and with great success. Dash displays higher liquidity and much faster processing times than many of its counterparts, while continuously implementing new methods for protecting its users’ privacy.
- Litecoin (LTC): Another up-and-comer in the crypto market, Litecoin was built as an improvement upon Bitcoin’s infrastructure. Litecoin took center stage earlier this year, when it implemented SegWit, an upgrade that enabled it to reduce processing time, which could be used by other currencies in the future.
- XRP by Ripple Lab (XRP): Unlike some of its peers, XRP was developed as a means of exchanging various currencies, cryptocurrencies and other tokens of value (such as frequent flyer miles). The XRP platform is used by well known brands such as Bank of America and Santander, and while a single XRP token is priced much lower than most other cryptocurrencies, its high market cap and trading volume make it the third-largest currency in the world.
Join the cryptocurrency craze
There’s no doubt that the crypto market took center stage in 2017, with many investors going from not even knowing the term to becoming savvy crypto traders. The Crypto Smart Portfolio is a first-of-its-kind investment opportunity for those who do not necessarily have the time or knowledge to trade cryptocurrencies, but still wish to invest in a well-balanced portfolio, gaining exposure to the cryptocurrency market.
Virtual currencies are highly volatile. Your capital is at risk.
eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.