Just-In: eToro and 21Shares Launch Crypto Smart Portfolio

Financial asset trading firm eToro has partnered with 21Shares, the largest issuer of crypto exchange-traded products (ETPs) to create a smart portfolio. 

In an April 23 release, the eToro explained that the newly launched 21Shares-Flows will offer retail investors more tools leveraging on a dynamic and innovative approach. According to the release, the new portfolio holds crypto assets and will utilize insights from monthly flows to European crypto ETPs. 

“We’ve partnered with @21Shares, the world’s largest issuer of crypto ETPs, to launch a new crypto Smart Portfolio. This portfolio holds 25 tokens allocated according to monthly flows into European crypto ETPs for a data-driven and diversified investing approach.”

For 21Shares, the goal is to make a crypto investment transparent and efficient through a data-driven approach.

We’re thrilled to announce our partnership with @eToro , a global leader in social trading and investing. Together, we’re launching 21Shares-Flows, a Smart Portfolio of 25 tokens including Bitcoin, Ethereum, and exciting new additions like Celestia.

Our shared vision is to make… pic.twitter.com/1rGDx3u9ke

— 21Shares (@21Shares) April 23, 2024

Portfolio to Adjust to Market Dynamics

The 21Shares-Flow comprises 25 crypto assets including Bitcoin (BTC) and Ethereum (ETH) and is rebalanced based on monthly dynamics. It uses a simple calculating method to determine the percentage of flows.

Generally, computing the sum for each asset in the month and dividing the figure by total market flows. This rebalancing structure will see retail investors get all features based on present market sentiments. If Bitcoin or Ethereum ETPs see inflows, they rebalance to give the asset a larger share.

eToro Eyes New Inflows 

Hany Rashwan, the CEO of 21Shares highlighted that both firms will leverage their expertise in the Smart Portfolio offering a more advanced crypto investment.

This move comes as Bitcoin ETFs and other institutional products continue to dominate investment narratives. Inflow to institutional products has led to a price surge pushing the BTC to a new all-time high above $73,000 this year.

Dani Brinker, eToro’s Head of Investment Portfolio noted the prospects for the partnership to improve investment in the crypto market. “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.”

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