On April 26, eToro – an online multi-asset trading platform – announced a new portfolio called BitcoinWorldWide. To further incentivize Bitcoin adoption, the portfolio is based on companies whose business is closely tied to Bitcoin’s value.
Companies in the so-called Bitcoin ‘value chain’ focus on cryptocurrency mining, payments, exchange, semiconductors, insurance services, and custodianship, as well as BTC itself. Therefore the portfolio includes PayPal, NVIDIA, Canaan (mining hardware manufacturer), and Coinbase, a well-known cryptocurrency exchange.
“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,” said Dan Brinker, head of portfolio investments for eToro.
Since starting operations in 2009, Bitcoin and its network experienced incredible growth, with a market cap valued at $1 trillion in 2021. BTC adoption was a contributing factor for its rise in 2020, with payment processors PayPal and Square announcing plans to support Bitcoin transactions. Analysts expect that BitcoinWorldWide, eToro’s new portfolio, will push the mainstream adoption rate further up.
“As it crosses into mainstream awareness, Bitcoin is increasingly in the spotlight. The most significant change surrounding the world’s largest crypto is not its price, but the companies building the value chain around it,” Brinker added. “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.”
The BitcoinWorldWide portfolio is one of more than 40 CopyPortfolios available to eToro users, with a minimum trade size of $25 and no management fees.
eToro is scheduled to go public in a Special Purpose Acquisition Company deal with FinTech Acquisition Corp. V. Its initial evaluation is $10.4 billion. The company grew by 147% compared to the year before, with more than 1.2 million new users (out of 20 million registered) and 75 million trades in January 2021.