eToro

eToro Launches Stock Portfolio Behind Bitcoin’s Value Chain

eToro has launched a thematic portfolio based on the companies in the value chain behind bitcoin. While eToro’s BitcoinWorldWide includes some exposure to bitcoin itself, portfolio’s core focus is the companies operating to support further adoption.

BitcoinWorldWide is one of over forty thematic CopyPortfolios available on the social investment platform, where users can invest from as little as $1,000 with no management fees, while spread does still apply.

Dani Brinker, eToro’s Head of Portfolio Investments, said: “As it crosses into mainstream awareness, bitcoin is increasingly in the spotlight. New all-time highs might make headlines, but the most significant change surrounding the world’s largest crypto is not its price, but the companies building the value chain around it. From mining operations to chip manufacturers and those delivering services to support usage, payments, exchanges, and custody, there’s more to bitcoin than you might think.”

Bitcoin has grown from unfamiliar tech in 2009 to a household name attracting institutional investment and media headlines with a market capitalization of $1 trillion.

The portfolio includes companies in bitcoin’s value chain, whether they are operating in the mining, semiconductor, payments, exchange, custodianship, or insurance spaces, as well as the asset itself.

BitcoinWorldWide includes shares in Paypal, chip manufacturer Nvidia, mining hardware producer Canaan, and newly public crypto exchange, Coinbase, as well as a bitcoin allocation. It intentionally excluded organizations that are bullish on bitcoin but lack business units related to its activity, such as MicroStrategy.

“Our aim is to provide retail investors with an easy way to get exposure to companies that deliver a service or product essential to the further adoption of bitcoin,” explains Dani Brinker. “It is a broader approach to bitcoin investing that offers a diversified investment, uncorrelated with the bitcoin itself, but maintains exposure to the growth potential of the crypto sector.”

eToro has recently added Chainlink (LINK) and Uniswap (UNI) to its crypto offering as the social investment platform looks to bolster its offering for both retail and professional clients in the coming months.

eToro clients have first gained access to crypto markets since 2013. Currently with 20 million registered users globally, the platform allows them to buy, hold and sell the real underlying assets of both LINK and UNI on its investment platform, using fiat currency.

The addition of UNI and LINK bring the total number of tokens that people can invest in on eToro to 18 (16 coins for US clients).

LINK is the native token of Chainlink, which was the first protocol to create a secure bridge between information within decentralised applications (d’apps) and information outside of the blockchain. Through its network of oracles it determines if information has been falsified or manipulated. It is currently the 12th biggest crypto with a market value of over $16 billion[1].

UNI is a governance token for the Uniswap decentralized exchange built on the Ethereum blockchain. Uniswap facilitates automatic trading of any ERC token where there is liquidity between unknown counterparties, using smart contracts. Unlike centralised exchanges, it does not require an order book. Trading volume on the exchange reportedly hit over $30 billion in January 2021[2]. UNI has a market cap of over $16 billion and is the 11th biggest cryptoasset according to CoinMarketCap.

The firm has recently hired Dr. Hedva Ber as Deputy CEO and Global Chief Operating Officer (COO), who is now leading eToro’s operational infrastructure, corporate governance, compliance and regulatory affairs, legal, risk management and social responsibility.

Dr. Ber has more than 25 years of experience across the banking and finance industry. Between 2015 and 2020 Dr. Ber served as Israel’s Supervisor of Banks where she actively promoted digital transformation and the implementation of innovation and technological changes in the banking and payment sectors. Prior to that she held several senior roles at Bank Leumi, the last being Chief Risk Officer.

From 2005 to 2008 Dr. Ber represented the State of Israel on the Board of Directors of the European Bank for Reconstruction and Development (EBRD) in London. She received her PhD in Economics from the Hebrew University in Jerusalem. Dr. Ber is considered to be one of Israel’s leading and influential economists who drove significant changes in the banking sector.

eToro has announced it will go public after reaching a deal with Fintech V, a special purchase acquisition company, a pioneer in the evolution of SPACs.

Existing eToro equity holders will retain approximately 91% ownership in a deal with an estimated implied equity value of approximately $10.4 billion.

The deal is expected to go through in the third quarter of 2021 and once it does, the combined company will operate as eToro Group Ltd. and intends to be listed on NASDAQ.

In the last few years, eToro has solidified its position as the leading online social trading platform outside the U.S., outlined its plans for the U.S. market, and diversified its income streams. It is now at an inflection point of growth, and we believe eToro is exceptionally positioned to capitalize on this opportunity.”