To help investors capture the opportunities generated by the growth and adoption of Web3 technologies, eToro has developed the Web3Applications Smart Portfolio.

Designed for long-term investors, this portfolio provides access to a range of decentralised application (dApp) projects at the heart of the Web3 revolution, and includes stocks of companies that have partnered with one or more dApps to develop and implement Web3 strategies.

This Smart Portfolio provides access to both crypto tokens powering dApps (the focus is on dApps outside the financial sector), and innovative companies that have partnered with dApps to create new business models and enhance customer experiences.

Examples of cryptoassets in the Smart Portfolio include:

• FIL: The native cryptoasset of the Filecoin platform.
• FET: The cryptoasset that powers the Fetch.ai platform.
• BAT: The utility token made to be used with the Brave browser.

Examples of businesses included in the portfolio include:

• Nike: Nike recently released .SWOOSH, a platform that allows users to buy and trade digital collectibles such as virtual sneakers or jerseys. These items can be worn in video games and other immersive experiences.
• Samsung: Samsung recently signed a deal with blockchain company Theta Labs to launch an NFT ecosystem for its new range of Galaxy mobile phones.
• Oracle: Oracle recently announced that it is partnering with Web3 services platform Chainlink to help start-ups to sell their data.

Because Web3 is an emerging asset class and asset prices are extremely volatile, diversification is a major feature of this Smart Portfolio. In total, the portfolio contains 30 different securities with positions equally weighted. This does not eliminate risk, of course. However, it does reduce security-specific risk substantially. In other words, a large decline in the price of one or two securities is unlikely to have a major impact on the value of the entire portfolio.

The Web3Applications Smart Portfolio offers a straightforward way for investors to gain exposure to Web3. Through this portfolio, investors can direct capital towards a range of exciting, disruptive technologies, and position themselves for the future.

eToro regularly expands its list of smart portfolios. Earlier this year, the brokerage introduced AI Revolution, a Smart Portfolio that offers the opportunity to invest in the Artificial Intelligence sphere, allocating to some of the most innovative and technological companies in this domain.