eToro launches DeFi portfolio as a long-term investment solution

Rick Steves

“By packaging up a selection of cryptoassets in a DeFi CopyPortfolio, we’re doing the heavy lifting and enabling our customers to gain exposure and spread the risk across a variety of cryptos”.

eToro has gone forward with a DeFi portfolio to offer investors long-term exposure to key projects in the DeFi ecosystem.

The social trading platform was one of the first multi-asset brokers to offer Bitcoin and altcoins, and now is making a move toward DeFi, enabling users to become part of one of the most innovative developments in finance.

Decentralised finance (DeFi) is a movement that aims to bypass traditional financial intermediaries by putting financial services on the blockchain.

Rather than merely decentralising transactions (as with Bitcoin), DeFi aims to decentralise wider parts of the financial industry.

This is accomplished through smart contracts, which are snippets of computer code that enable complex transfers and agreements to be carried out on the blockchain without the need for approval from a central authority body.

eToro’s DeFi portfolio comprises eleven DeFi cryptoassets: Ether (ETH), Uniswap (UNI), Chainlink (LINK), Aave (AAVE), Compound (COMP), Yearn.finance (YFI), Decentraland (MANA), Polygon (MATIC), Algorand (ALGO), Basic Attention Token (BAT), and Maker (MKR).

Dani Brinker, head of portfolio investments at eToro, said: “DeFi is one of the most talked about innovations in finance, with thousands of new cryptoassets emerging in recent months. But for people who don’t have the time to research every asset’s whitepaper, the market may seem like a minefield. By packaging up a selection of cryptoassets in a DeFi CopyPortfolio, we’re doing the heavy lifting and enabling our customers to gain exposure and spread the risk across a variety of cryptos.”

“Decentralised finance is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilises smart contracts on blockchains”.

“Both smart contract blockchains and a selection of leading protocols are included in the portfolio, giving you exposure to every corner of DeFi — from Uniswap to Yearn and beyond — without having to spend hours on research. We use eToro’s unique position as an innovator within the crypto domain, to revisit these projects and update the allocation and methodology down the line”, Mr. Brinker added.

eToro’s DeFi Portfolio can be added for an initial investment starting from $1,000, with access to tools and charts to track the portfolio’s performance, and eToro’s social feed to stay up-to-date on developments in the DeFi sector.

DeFi is one of over sixty portfolios available on eToro. The broker’s portfolios bundle together several assets under a defined methodology, and employ a passive investment approach to offer ready-made, fully allocated exposure to various market themes. eToro portfolios are long-term investment solutions that offer diversified exposure with no management fees.

Read this next

Digital Assets

DappRadar report: NFTs volume below $1 billion for the first time since June 2021

DappRadar’s July 2022 industry report found that blockchain games and their NFTs remain resilient amid a crypto winter accentuated by the debacle of Terra.

Digital Assets

Blockchain.com registers to operate crypto business in Italy

Blockchain.com had registered as a digital asset provider in Italy, following in the tracks of rivals who joined a special registry with brokerage regulator Organismo degli Agenti e dei Mediatori (OAM).

Digital Assets

Binance rolls out crypto card in Argentina with 8% cashback

Binance is launching its crypto debit card in Argentina, the first country in Latin America to have the product thanks to a partnership with Mastercard.

Digital Assets

Greece sends BTC-e operator Alexander Vinnik to US

Alexander Vinnik, an alleged Russian hacker accused of laundering $4 billion of criminal proceeds through BTC-e, has been extradited from Greece to the United States.

Retail FX

Saxo Bank reports weakest FX volume in 6 months

As many traders were away on annual summer leave, currency markets saw a relatively quiet period in July. Within that context, Copenhagen-based Saxo Bank has reported its monthly metrics, which showed a renewed decline month-over-month.

Market News

The Week Ahead: 5 August from David Madden, Market Analyst at Equiti Group

It has been an interesting week and despite a lot of negative news, equity markets enjoyed a positive run. US House Speaker, Nancy Pelosi, defied the warnings from the Chinese government and carried out a visit to Taiwan. The Beijing authorities moved military hardware close to the self-governed island to flex its muscles. Stock markets came under a little pressure as a result and risk-off assets like the Japanese yen and gold found themselves in high demand.

Opinion

Alina Strogonova of Muvon Payments: How Can Fintech Optimise Payments

Financial services in their conventional form are obsolete, according to fintech startups. New-age finance is constantly redesigning electronic money transactions and testing innovative solutions.

Digital Assets

No need for CFDs: BitMEX introduces leveraged FX perpetual swaps

Previously retail FX trading was mostly possible via CFDs (contract for difference). BitMEX’s FX perps allow both retail users and institutional traders to access FX markets through an exchange-traded contract.

Digital Assets

BEQUANT launches index measuring dollar against crypto

“Our research team has worked hard to quantify and capture the latest economic story into the broader crypto market.”

<