eToro has launched a Crypto CopyFund in July 2017 to offer its clients opportunity to capitalize on booming cryptocurrency market. Since then, it became one of the most popular products on the platform. If you are looking to invest in Crypto CopyFund, read this review where we will cover the basic principals on how to invest into this trading strategy which offers passive and risk-balanced exposure to crypto-currencies such as Bitcoin, Bitcoin Case, Ethereum, Ethereum Classic, Dash, Ripple and Litecoin.
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In the Crypto CopyFund, investment allocation is based on the market capitalisation of each cryptocurrency, very similar to what traditional ETF and index funds do. eToro Crypto CopyFund is a product created by eToro investment team and managed by its investment committee. The fund does re-balancing first trading day of each calendar month and is offering a diversifies and balanced portfolio of crypto assets. You can invest in Crypto CopyFund as easy as in any other social trading strategies on eToro.
Invest in Crypto CopyFund
This is a great news as many people still find investing in cryptocurrencies an extremely complex process, which required good technical knowledge and risk management skills. Luckily, you can invest in Crypto CopyFund on eToro, a broker that is providing everyone with a secure way to invest in the crypto market using easy-to-use, regulated trading platform.
There is also another cryptocurrency CopyFund available on eToro which is called Crypto-currency CopyFund. It is very similar to Crypto CopyFund but it only invests in Bitcoin and Ethereum.
Crypto CopyFund risks
The risk score for eToro Crypto CopyFund is determined by specifics of allocation of each portfolio and overall volatility of the underlying assets, with the lowest risk is 1 and the highest is 10. The current risk score of invest in Crypto CopyFund is 7, which puts it into a risky category.
Allocations and Exposure
The eToro Crypto CopyFund is investing in cryptocurrencies that have a market capitalisation of at least $1 billion and an average monthly trading volume $20 million or more. The weight of each cryptocurrency in the portfolio is proportionate to its market capitalization within a total crypto market, with a minimum of 5% allocated to each crypto.
As of January 2018, the current allocations within eToro Crypto CopyFund are as follows:
Crypto CopyFund Historical Performance
The performance of two different Crypto Copy Funds is as follows
- Crypto CopyFund returned 332.49% since inception in June 2017
- Crypto-currency CopyFund returned 884.69% since inception in April 2017
As we can see, despite a recent decline across all cryptocurrencies, the performance of both funds remains strong.
Crypto CopyFund Pros
- Invest in Crypto CopyFunds allows you to diversify across a number of digital assets without owning them individually in the portfolio.
- Regular re-balancing allows maintaining the optimal portfolio construction according to crypto assets’ market capitalization.
- Client’s funds are always segregated and held with the largest Europeans banks and insured in accordance with European regulations.
Crypto CopyFund fees
Unlike with other social trading strategies, there are no management fees associated. If you want to invest in Crypto CopyFund, the only cost will be a spread which is associated with monthly rebalancing.
How to invest in Crypto CopyFund
- Go to eToro
- Sign up using the application form
- Choose “Invest in Crypto CopyFund“ once you logged into your account
- Go to Market CopyFunds
- Select CryptoFund or just press the + icon on a dashboard
- Within the CryptoFund area press the + icon to add it to your portfolio
The minimum amount required to invest in Crypto CopyFunds is $5,000.
Read eToro review for more details
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RISK DISCLAIMER: Cryptocurrencies can fluctuate widely in prices and are therefore not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk.