eToro has expanded its investment product offerings list with the latest addition of a decentralized finance (DeFi) portfolio, tracking the performance of several DeFi-related cryptocurrencies.
The Israeli broker offers the portfolios as a bundle of investment products. These portfolios usually pick the investment products of certain assets, representing various market themes.
The recently introduced DeFi portfolio of eToro includes eleven crypto assets: 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).
Commenting on the new investment product, Dani Brinker, eToro’s Head of Portfolio Investments, said: “DeFi is one of the most talked-about innovations in finance, with thousands of new crypto assets 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 crypto assets 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.”
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eToro clients will require a minimum investment of $1,000 to buy into the DeFi investment portfolio.
Rising Demand for Thematic Products
The demand for thematic investment products skyrocketed recently and many platforms are now offering such bundled portfolios. eToro, which made its name with social trading services, already offers over sixty such investment portfolios across several asset classes.
“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 utilizes smart contracts on blockchains,” Brinker added.
“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.”