Bitcoin lost more than half its value during the first three months of 2018. That decline ranks as the second-worst quarterly performance in the cryptocurrency's history. In 2011, the worst quarter sa
Bitcoin lost more than half its value during the first three months of 2018. That decline ranks as the second-worst quarterly performance in the cryptocurrency's history. In 2011, the worst quarter saw Bitcoin plunge 68 percent, sliding from $16.10 to $5.14.
In mid-December 2017, Bitcoin had surged to nearly $20,000, marking an all-time high. Four months later, regulatory concerns and other market pressures sent the price down to around $6,650, a level not seen since November 2017.
Investor interest in digital assets hasn't waned despite the downturn. eToro, a trading and investment platform, counts more than nine million users on its network. The company holds licenses from the Cyprus Securities Exchange Commission and the U.K.'s Financial Conduct Authority, positioning itself among the regulated players in a largely unregulated market.
eToro built the Crypto CopyFund in July 2017 to simplify entry for people considering digital asset investing. The fund includes eight cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Ethereum Classic, Dash, and Stellar. Rather than selecting individual coins and managing a portfolio themselves, investors can purchase shares in an allocation that eToro's investment committee manages. The fund's design offers exposure to the top digital assets without requiring extensive research.
The committee assigns weight to each holding according to the cryptocurrency's proportion of the fund's combined market capitalization. Bitcoin and Ethereum receive larger stakes given their market dominance, but all eight assets receive a guaranteed minimum of 5 percent. eToro rebalances the portfolio on the first trading day of each month as the committee deems necessary to maintain target allocations.
The platform caps how much capital the fund can accept on any given day. When the daily ceiling is reached, eToro closes the fund to new investors and reopens it the following day. This mechanism prevents the fund from becoming unmanageable due to excessive inflows. People who already own shares can sell their position whenever they choose.
eToro displays publicly how many traders own the fund, giving investors visibility into the investor base. The platform provides performance charts showing returns across multiple time periods and displays yearly results alongside a risk score ranging from 1 to 10. eToro developed this scoring system to measure volatility in a way that ordinary investors can understand.
Cryptocurrency traders on eToro's platform share knowledge about digital assets and market conditions. Members educate each other on cryptocurrency fundamentals and discuss how regulatory developments might affect prices. Those interested in the CopyFund can visit eToro's review page to learn how the investment vehicle works and evaluate whether it matches their investment goals.
Your capital is at risk. Cryptocurrency prices fluctuate and may not be appropriate for all investors. Cryptocurrency trading operates outside EU regulatory frameworks. Past performance does not guarantee future results. This information is not investment advice.
