eToro and 21Shares Join Forces to Launch A “Data-Driven” Crypto Portfolio for Retail Investors

Crypto trading firm eToro has partnered with 21Shares, the 
world’s
 largest issuer of crypto exchange-traded products (ETPs), to introduce a new crypto portfolio for retail investors. ,Called 21Shares-Flows
, the portfolio aims to provide retail investors with a dynamic and data-driven approach to crypto investing, according to a 
Tuesday press release
. ,It holds actual cryptoassets and leverages insights derived from monthly flows into European crypto ETPs. ,The f
lows are segmented by underlying assets, including popular cryptocurrencies like Bitcoin, Ethereum, and various altcoins.
 ,


By tracking investor preferences and market dynamics, the portfolio adjusts its allocation to align with emerging trends and current sentiment.,For instance, if Bitcoin ETPs experience significant inflows, the 
portfolio’s
 allocation to Bitcoin will be increased accordingly, reflecting the prevailing market sentiment.,“O
ur latest research shows that retail investors around the world are more likely to increase their allocation to crypto than any other asset class,
” 
Dani Brinker, Head of Investment Portfolios at eToro, said. ,The 21Shares-Flows portfolio consists of 25 cryptoassets, including popular cryptocurrencies like Bitcoin and Ethereum
, as well as
 newer additions such as Celestia.
 ,It undergoes monthly rebalancing to ensure alignment with market dynamics. ,During the rebalancing process, the sum of flows for each underlying asset is computed and divided by the total market flows to determine the updated weights.,“W
e are excited to partner with eToro to introduce the 21Shares-Flows portfolio, which represents a significant advancement in crypto investment,
” 
Hany Rashwan, CEO of 21Shares, 
said in a comment
. ,


Last month, 21Shares revealed that it 
has surpassed $5 billion
 in Assets Under Management (AUM) amid 
market
 rebound.  ,21Shares has experienced rapid growth over the past couple of years. ,Just earlier
 this year, the company 
joined Ark Invest to refile
 an application for a spot market Ethereum ETF.,Likewise, Ark Invest and 21Shares have 
announced a collaboration
 to enhance transparency for their ARK 21Shares Bitcoin ETF (ARKB) by integrating 
Chainlink’s
 Proof of Reserve platform to verify holdings data.,21Shares’s
 diverse range of ETPs 
allow
 investors to gain exposure to cryptocurrencies through traditional investment vehicles without 
the need 
to directly buy, store, or manage
 the cryptocurrencies themselves
., Various stock exchanges have listed 21Shares ETPs, making them accessible to investors who have accounts with traditional brokers that have access to these exchanges. ,The ETPs 
are backed
 by the underlying cryptocurrencies, which 
are held
 in secure custody.,21Shares-Flows to Adjust Allocation Based on Market Dynamics