eToro, a leading online trading and investing platform has announced the launch of CopyFund, a cryptocurrencies investments.
eToro Launches Cryptocurrencies CopyFund
The launch of eToro’s cryptocurrencies investment fund follows a high market capitalization point of $100bn for all cryptocurrencies. At the same time, the number of eToro users trading cryptocurrencies has grown four times in a span of just one year.
With the CopyFund, users can invest in predefined market strategies while leveraging the input of other users. Market CopyFunds and Top Trader CopyFunds allow investors access to the best strategies from the global community of eToro investors. These are set up with the goal of ensuring that investors reduce long term risks while offering diversified investments and opportunities for growth.
In the last year, the market capitalization of all cryptocurrencies rose from $11bn to $100bn. At the same time, since the start of the year, the prices of Ethereum grew from $8 to $257.
The CopyFund has returns of more than 120% since it was set up in mid-April. This initial cryptocurrency CopyFund will invest in Ethereum and bitcoin, the two largest cryptocurrencies.
The market capitalization of individual cryptocurrencies will be the determining factor in the weighting of the assets in the CopyFund. The new fund will be analyzed regularly and each month, will be rebalanced automatically.
According to CEO and co-founder of eToro, Yoni Assia, “Cryptocurrencies and blockchain represent the biggest innovation in the financial services market since computers were introduced to finance. Today, we’re making this market more accessible to a bigger number of investors.”
He added, “More and more traders and investors are learning about the potential of this market and participating. Now, they will have access to a long term investment strategy that is regularly reviewed and rebalanced.
“We have witnessed an increase in the number of users looking for a simpler way to access cryptocurrencies investments in order to build a portfolio in the future. They were looking for ways to allocate their investments between the two largest cryptocurrencies offered on eToro and therefore we have launched an investment strategy that can be automatically rebalanced to make it easier for them to invest in this new innovative asset class.”
He further said, “We plan to add more cryptocurrencies including Dash and Ripple, in the near future to grow our offering as well.”
eToro users may also focus on trading Ethereum or Bitcoin and users can also copy the trading strategies of successful cryptocurrencies experts.
Presently, eToro has 21 CopyFunds with a minimum investment of $5,000.