On June 6, eToro announced the launch of its Cryptocurrency CopyFund, which will allow customers to invest in Ether and bitcoin. Over the last year, the number of eToro users trading cryptocurrencies has grown by a factor of four. Co-founder and CEO of eToro, Yoni Assia, said:
“We have been seeing an increasing number of our clients looking for a simpler way to access investments in cryptocurrencies – with a view to building a portfolio in the future. They were asking how to allocate their investments between the two largest cryptocurrencies that are traded on eToro, so we have launched an automatically rebalanced investment strategy to simplify their investments into this new exciting asset class.”
eToro customers have previously accessed the cryptocurrency markets through CFDs (contracts for difference).
“More and more traders and investors are learning about the potential of this market and getting involved. Now they will be able to access a long-term investment strategy that is constantly reviewed and rebalanced,” Assia added.
In the Cryptocurrency CopyFund, holdings will be proportional to the market caps of individual cryptocurrencies. Once a month, the fund will automatically be analyzed and rebalanced. Structured as medium-to-long-term investments, CopyFunds require a minimum pay-in of $5,000. While there are no management fees associated with CopyFund investment, eToro does charge transaction fees.
eToro will expand its offerings of cryptocurrencies in the near future to encompass Ripple and Dash among others.
Based in Tel Aviv, Israel, eToro has millions of users in more than 170 countries. In December 2014, eToro raised $27 million from China’s Ping An Insurance Company and Russia’s state-owned Sberbank. At the St. Petersburg International Economic Forum, eToro recently presented a pilot blockchain wallet in partnership with coloredcoins.org.