- The world’s largest issuer of cryptocurrency exchange-traded products (ETPs), 21Shares, has teamed up with eToro, a cryptocurrency trading firm, to launch a new crypto portfolio for individual investors.
- 21Shares-Flows portfolio intends to give retail investors a dynamic and data-driven approach to cryptocurrency investing.
It uses data from monthly flows into European crypto ETPs and stores real crypto assets.
The underlying assets, which include well-known cryptocurrencies like Bitcoin, Ethereum, and other altcoins, are divided into segments inside the flows.
21Shares: Flows to Modify Allocation in Response to Market Conditions
The portfolio modifies its allocation to take into account new trends and emotions by monitoring investor preferences and market conditions.
For example, the portfolio’s allocation to Bitcoin will be boosted in line with the current market sentiment if Bitcoin ETPs witness large inflows.
According to our most recent data, retail investors are more likely than any other asset class to expand their allocation to cryptocurrencies globally. eToro’s Head of Investment Portfolios, Dani Brinker, stated.
There are twenty-five cryptoassets in the 21Shares-Flows portfolio, including more recent arrivals like Celestia and well-known ones like Ethereum and Bitcoin.
Every month, it is rebalanced to make sure it is in line with market conditions.
The new weights are calculated during the rebalancing process by summing the flows for each underlying asset and dividing the result by the overall market flows.
According to a comment made by 21Shares CEO Hany Rashwan, “We are thrilled to collaborate with eToro to present the 21Shares-Flows portfolio, which represents a significant advancement in crypto investment.”
21Shares’ AUM Exceeds $5 Billion
Amidst a market resurgence, 21Shares disclosed last month that its Assets Under Management (AUM) had crossed $5 billion.
Over the last few years, 21Shares has grown quickly.
The business teamed up with Ark Invest not too long ago in order to resubmit an application for an Ethereum ETF for the spot market.
Similarly, Ark Invest and 21Shares have declared their partnership to combine Chainlink’s Proof of Reserve platform to validate holdings data, thus improving transparency for their ARK 21Shares Bitcoin ETF (ARKB).
Without having to actively purchase, store, or handle cryptocurrencies themselves, investors can have exposure to cryptocurrencies through conventional investment vehicles thanks to 21Shares’ wide selection of exchange-traded products (ETPs).
21Shares ETPs are now available to investors with accounts with traditional brokers that have access to these exchanges thanks to their listing on a number of stock exchanges.
The underlying cryptocurrencies, which are kept in safe custody, support the ETPs.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
