Online brokerage eToro and issuer of crypto exchange traded products (ETPs) 21Shares have partnered to launch a new portfolio named 21Shares-Flows, designed to offer retail investors a dynamic and data-driven approach to crypto investing.

The 21Shares-Flows portfolio holds real cryptoassets and harnesses insights from monthly flows into European crypto ETPs, segmented by underlying assets such as Bitcoin, Ethereum and various altcoins to provide the portfolio’s new allocation. By tracking investor preferences and market dynamics, the portfolio will align with emerging trends and current sentiment.

For example, if Bitcoin ETPs witness significant inflows, the allocation to Bitcoin within the portfolio is increased accordingly, reflecting the prevailing market sentiment.

“Our latest research shows that retail investors around the world are more likely to increase their allocation to crypto than any other asset class,” said Dani Brinker, Head of Investment Portfolios at eToro. “This portfolio provides investors with a unique opportunity to capitalise on the growth potential of cryptoassets in a structured and data-driven manner. We are looking forward to bringing 21Shares’ industry-leading insights to our users.”

“We are excited to partner with eToro to introduce the 21Shares-Flows portfolio, which represents a significant advancement in crypto investment,” said Hany Rashwan, CEO of 21Shares. “This collaboration leverages our expertise in crypto ETPs and eToro’s innovative Smart Portfolios platform to offer investors a transparent and data-driven approach to navigating the crypto market.”

The 21Shares-Flows portfolio comprises 25 cryptoassets including Bitcoin, Ethereum, and new additions to eToro such as Celestia. It is rebalanced monthly to ensure its alignment with market dynamics. The rebalancing process involves computing the sum of flows for each underlying asset, which is then divided by the total market flows to define the updated weights.

The full initial allocation can be found here.

eToro’s range of Smart Portfolios offer exposure to various market themes. Bundling together several assets under a defined methodology, and employing a passive investment approach, they provide long-term investment solutions that offer diversified exposure. Initial investment starts from USD$500 and any investors can access tools and charts to track the portfolio’s performance, while eToro’s social feed will keep them up-to-date on developments in the sector.