eToro Crypto CopyFund
eToro has launched a Crypto CopyFund that offer an opportunity for a passive and risk-balanced exposure to cryptocurrencies such as Bitcoin, Ethereum, Ripple, Ethereum Classic and Litecoin. The Crypto CopyFund allocation is based on the market cap of each cryptocurrency. The fund rebalances every first trading day of each calendar day. eToro Crypto CopyFund is a product created and managed by eToro´s investment committee.
There is also another cryptocurrency CopyFund called Crypto-currency CopyFund. This fund is very similar but only invests in Bitcoin and Ethereum.
Crypto CopyFund Risk
The current risk score on eToro Crypto CopyFund i 7. The risk score is based on the allocation of the portfolio and the overall volatility of the underlying markets. 1 is the lowest risk and 10 is the highest risk.
Allocation and Exposure
The eToro Crypto CopyFund focus on cryptocurrencies with a market cap over $1billion and an average trading volume over $20million throughout the month. The weight of each cryptocurrency is decided proportionally according to its market cap size, with a minimum of 5%.
Bitcoin: 63.8 %
Ethereum Classic: 3.3%
There are two different Crypto CopyFunds
- Crypto CopyFund 39.3% since June 2017
- Crypto-currency CopyFund 265% Since April 2017
Crypto CopyFund Pros
There is no management fees associated with investing in an eToro Crypto CopyFund. However, there will always be spreads as the Crypto CopyFund reallocate once a month.