eToro, the world’s leading social investment network, today launches BitcoinWorldWide, a thematic portfolio based on the companies in the value chain behind bitcoin. While it includes some exposure to bitcoin itself, the portfolio’s core focus is the companies operating to support further adoption.
“As it crosses into mainstream awareness, bitcoin is increasingly in the spotlight” says Dani Brinker, eToro’s Head of Portfolio Investments. “New all-time highs might make headlines, but the most significant change surrounding the world’s largest crypto is not its price, but the companies building the value chain around it. 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.”
Released in 2009, bitcoin currently boasts a market capitalisation in excess of $1 trillion. Throughout the last decade, the first and most famous crypto has gone through multiple stages of adoption – from unfamiliar tech to a household name attracting institutional investment and media headlines. Last year marked another milestone, with payments companies including Square and PayPal announcing plans to support bitcoin payments, setting the groundwork for millions around the world to easily transact in bitcoin. Now, only 12 years after its founding, you can pay with bitcoin in HomeDepot, buy a Tesla, grab a Whopper or KFC (in some countries), buy games in the Xbox Store and pay your AT&T phone bill.
The portfolio includes companies such as Paypal, chip manufacturer Nvidia, mining hardware producer Canaan and newly public crypto exchange, Coinbase, as well as a bitcoin allocation. eToro considers bitcoin’s value chain to include companies operating in the mining, semiconductor, payments, exchange, custodianship and insurance spaces, as well as the asset itself. It intentionally excluded organisations that are bullish on bitcoin but lack business units related to its activity. For example, MicroStrategy, will not feature in the portfolio as its treasury holdings are its only connection to bitcoin.
“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,” explains Dani Brinker. “It is a broader approach to bitcoin investing that offers a diversified investment, uncorrelated with the bitcoin itself, but maintains exposure to the growth potential of the crypto sector.”