eToro copier update May 2024

Summary

In this video update, the speaker discusses their current investment portfolio, emphasizing a shift towards cryptocurrencies with a focus on Bitcoin, Ethereum, and Solana. They've added Binance Coin for diversification and Ono Finance for its innovative approach to merging traditional and institutional finance with blockchain technology. The speaker also mentions GTO for its role in the Solana ecosystem. With an 86% crypto exposure, the portfolio has seen performance improvements, offsetting previous drawdowns. The speaker plans to adjust stock positions to balance risk, considering assets inversely correlated to crypto. They highlight Bitcoin's consolidation near all-time highs and the recent approval of the ETH ETF as signs of broader crypto acceptance, hinting at potential market movements.

Takeaways

• 😀 The speaker is discussing their current portfolio and plans for future adjustments.
• 💼 The main positions in the portfolio remain unchanged, with a focus on Bitcoin, Ethereum, and Solana.
• 🚀 There is a heavier focus on crypto assets, with selective additions to the portfolio.
• 📈 Binance Coin has been added to the portfolio due to its strong performance in bull markets.
• 🔍 Ono Finance is a new addition, which aims to merge traditional and institutional finance onto the blockchain.
• 💡 Ono Finance's USDY token is backed by US treasuries, offering institutional-grade finance through a crypto lens.
• 🌐 The speaker anticipates a future where traditional financial assets like stocks are tokenized on the blockchain.
• 📊 GTO, part of the Solana ecosystem, has also been added to the portfolio for its potential in liquid staking.
• 📉 The increase in crypto positions has made the portfolio heavily crypto-centric, with 86% exposure to crypto assets.
• ⚠️ Risk management is emphasized, with a plan to balance the portfolio with less correlated or inversely correlated assets.
• 📉 The speaker may close positions in Palantir, CrowdStrike, and Uber to consolidate and focus on risk-balanced investments.
• 📈 Bitcoin is near all-time highs and is expected to move aggressively after a period of consolidation.
• 🎉 The approval of the Ethereum ETF indicates a broader acceptance of crypto and could pave the way for more crypto ETFs.
• 🤔 The speaker expects increased volatility and risk in the crypto market and plans to adjust the portfolio accordingly.

Q & A

What is the main focus of the speaker's current portfolio?

The main focus of the speaker's current portfolio is on cryptocurrencies, with a heavier emphasis on Bitcoin, Ethereum (ETH), and Solana (SOL).

What new crypto positions has the speaker added to the portfolio?

The speaker has added Binance Coin (BNB) and Ono Finance to the portfolio, as well as a smaller position in GTO.

Why did the speaker choose to include Binance Coin in the portfolio?

Binance Coin was chosen for its tendency to perform very well in bull markets, offering diversification away from the top three cryptocurrencies.

What is unique about Ono Finance according to the speaker?

Ono Finance is unique because it merges traditional and institutional finance onto the blockchain, offering services like USDY, a token backed by US treasuries.

What is the significance of USDY in the context of Ono Finance?

USDY is a crypto token backed by US treasuries, providing a way for people to access institutional-grade finance through a crypto lens.

What is the speaker's view on the volatility of the added crypto positions?

The speaker acknowledges that the added crypto positions, such as Ono Finance and GTO, are more volatile and advises keeping their position sizes under control.

How has the increase in crypto positions impacted the portfolio's stats?

The increase in crypto positions has made the portfolio very crypto-heavy, with 86% exposure to crypto, and has also increased the overall risk slightly.

What is the speaker's strategy for balancing the risk in the portfolio?

The speaker plans to balance the risk by potentially investing in stocks that are not correlated or inversely correlated to crypto, or by adding other asset classes like commodities or fixed income.

What action has the speaker taken regarding stock positions in the portfolio?

The speaker has closed the Palantir position and is considering closing positions in CrowdStrike and Uber to consolidate and focus on stocks that help balance the portfolio's risk.

What is the speaker's outlook on Bitcoin and Ethereum?

The speaker expects Bitcoin and Ethereum to move aggressively soon, as they are currently consolidating near all-time highs, which is typically a sign of an upcoming market move.

What does the speaker think about the approval of the ETH ETF and its implications for crypto?

The speaker views the approval of the ETH ETF as a sign of broader acceptance of crypto and believes it could lead to more seamless developments in the crypto space, possibly including a Solana ETF.

Outlines

00:00

📈 Portfolio Update and Crypto Focus

In this video update, the speaker discusses their current portfolio, recent changes, and future plans. They have maintained their main positions in Bitcoin, Ethereum, and Solana, with a new emphasis on cryptocurrency. The addition of Binance Coin is highlighted for its strong performance in bull markets and its potential to diversify the portfolio. Ono Finance is introduced as an intriguing new investment, which aims to merge traditional and institutional finance with blockchain technology. The speaker also mentions the tokenization of traditional financial assets like USDY, backed by US treasuries, and expresses excitement for the future of such developments. Lastly, a smaller position in GTO within the Solana ecosystem is noted for its potential growth.

05:02

🚀 Crypto Volatility and Portfolio Management

The speaker addresses the increased volatility of their crypto positions, specifically mentioning the rapid rise of Ono Finance and GTO. They emphasize the importance of managing position sizes and keeping an eye on risk. The portfolio's performance is reviewed, showing a recovery from a drawdown in April to a 44% gain for the year. The speaker notes an increase in risk levels and discusses strategies to balance the portfolio, such as investing in stocks that are less correlated with crypto to reduce overall risk. They also mention closing less performing stock positions and consolidating the portfolio to focus on fewer, more strategic investments.

10:03

🔮 Market Outlook and Future Expectations

The speaker provides an outlook on the current state of Bitcoin, which is near all-time highs and appears to be consolidating before a potential aggressive move. They discuss the approval of the Ethereum ETF as a sign of broader acceptance of cryptocurrencies and speculate on the possibility of future ETFs for other crypto assets like Solana. The speaker also comments on the similar market patterns observed in Bitcoin and Solana, suggesting an upcoming bullish trend. They conclude by reminding viewers of potential upcoming changes to stock positions and inviting questions and discussion in the comments section.

Keywords

💡Portfolio

A portfolio refers to a collection of financial assets such as stocks, bonds, cryptocurrencies, and other securities held by an investor. In the context of the video, the speaker discusses their current portfolio, its changes, and plans for future adjustments. The portfolio is heavily weighted towards cryptocurrencies, reflecting the speaker's focus and strategy.

💡Bitcoin (BTC)

Bitcoin is the first and most well-known cryptocurrency, often used as a benchmark for the entire crypto market. In the video, the speaker mentions Bitcoin as one of their main positions in the portfolio, indicating its significance in their investment strategy.

💡Ethereum (ETH)

Ethereum is a decentralized, open-source blockchain system that features smart contract functionality. It is the second-largest cryptocurrency by market capitalization after Bitcoin. The speaker includes Ethereum in their portfolio, highlighting its importance alongside Bitcoin.

💡Soul

The term 'Soul' in the script likely refers to Soulbound tokens, which are a type of non-fungible token (NFT). These tokens are unique and represent ownership of a digital or physical asset. The speaker has Soul in their portfolio, emphasizing their interest in the emerging NFT market.

💡Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. The video's theme heavily revolves around cryptocurrencies, with the speaker discussing various crypto assets and their plans for managing crypto investments.

💡Binance Coin (BNB)

Binance Coin is the native token of the Binance exchange and is used to facilitate transactions on the platform. It is also used to pay fees and receive discounts. The speaker mentions adding Binance Coin to their portfolio, noting its performance in bull markets.

💡Ono Finance

Ono Finance is a project mentioned in the video that aims to bring traditional and institutional finance onto the blockchain. The speaker is interested in this project due to its innovative approach to merging different financial worlds and has already seen a significant return on investment.

💡USDY

USDY is a stablecoin backed by US Treasuries, providing exposure to US government debt within the crypto ecosystem. The speaker finds this particularly interesting as it allows for institutional-grade finance within the realm of cryptocurrencies, offering a unique blend of traditional and crypto assets.

💡Tokenization

Tokenization in the context of finance refers to the process of representing a real-world asset on a blockchain. In the video, the speaker discusses the tokenization of traditional financial assets like US Treasuries, which is a key feature of Ono Finance's offerings.

💡GTO

GTO likely refers to a project or token within the Solana ecosystem, which is known for its high-speed transactions and decentralized applications. The speaker mentions GTO as part of their portfolio, indicating its potential for growth and performance.

💡Volatility

Volatility refers to the degree of variation of a trading price series over time. In the video, the speaker discusses the volatility of different assets in their portfolio, particularly highlighting the more volatile nature of certain crypto assets like Ono Finance and GTO, and the importance of managing risk.

💡Risk Management

Risk management is the process of identifying, assessing, and prioritizing risks to minimize or avoid negative impacts. The speaker talks about adjusting their portfolio to manage risk, aiming to keep the maximum risk level at six, and considering asset classes that could balance out the crypto-heavy portfolio.

💡ETF

An ETF, or Exchange-Traded Fund, is a type of investment fund and exchange-traded product. In the video, the speaker discusses the approval of an Ethereum ETF, which they view as a sign of broader acceptance of cryptocurrencies and a potential catalyst for further growth in the crypto market.

💡Stocks

Stocks represent ownership shares in a corporation and are a traditional form of investment. The speaker mentions that while stocks are still part of their portfolio, their role is shifting towards balancing risk rather than solely focusing on outperformance, especially given the crypto focus.

💡Correlation

Correlation in finance measures the extent to which two securities move in relation to each other. The speaker discusses the importance of having assets with different performance patterns to reduce overall portfolio correlation and manage risk more effectively.

💡Diversification

Diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to enhance potential returns and reduce risk. The speaker adds different crypto assets to diversify away from the top three cryptocurrencies.

Highlights

Introduction to a video update discussing current portfolio, changes made, and future plans.

Main positions in the portfolio remain unchanged with a focus on Bitcoin, Ethereum, and Solana.

Shift towards a heavier focus on crypto with selective additions to the portfolio.

Addition of Binance Coin to the portfolio for diversification and potential performance in bull markets.

Binance Coin's tendency for quick performance spikes in shorter periods.

Introduction of Ono Finance, a lesser-known project with a focus on merging traditional and institutional finance onto the blockchain.

Ono Finance's USY token, backed by US treasuries, offering institutional-grade finance in the crypto space.

Anticipation of tokenization of traditional financial assets like stocks on the blockchain.

Addition of a small position in GTO, part of the Solana ecosystem, focusing on liquid staking.

Volatility of the newly added crypto positions and the importance of managing position size.

Performance update showing a 44% increase for the year and adjustments in risk levels.

Crypto now represents 86% of the portfolio, with stocks at 13.8%, indicating a crypto-heavy focus.

The importance of balancing the portfolio with less correlated or inversely correlated assets to manage risk.

Closing of the Palantir position due to poor performance and volatility.

Potential closure of CrowdStrike and Uber positions to consolidate and focus on risk management.

Bitcoin's current position near all-time highs and the potential for an aggressive market move.

Surprise approval of the Ethereum ETF indicating a broader acceptance of crypto.

Expectations for the market to heat up and increase in volatility, necessitating risk management strategies.

Closing remarks with a reminder of upcoming changes to stock positions and a summary of the video's content.

Transcripts

hello everyone and welcome to another

video update I'm just going to take you

through our current portfolio and the

changes that I've made um my plans on

how I'm going to be adjusting the

portfolio in the near future and just

some general thoughts on um the market

and what's to come and how I plan on

best dealing with

it so if we take a look at our portfolio

here

um our main positions really remain

unchanged so we have Bitcoin eth and

soul and off the back of what I was

discussing in the recent uh the most

recent

posts I now have a main or heavier focus

on

crypto so I've added some more crypto

positions here too very selectively um

but it's important just to to go through

those as well so I've added some binance

coin here which is something we didn't

have before this again is in the top uh

coins by market cap although it doesn't

get as much attention I guess it's not

as interesting you could say but it does

tend to perform very very well in Bull

markets so nice to diversify away from

these top three a bit and have something

that could perform

well but sometimes on a different time

frame so binance coin usually tends to

have uh I would say a kind of quicker

explosion where it it performs really

really well but for a shorter period of

time I think um so it's nice to have

things that don't don't perform all

exactly in the same way you know just to

keep that correlation down a little

bit then I've added um a very

interesting one is Ono Finance which I

seems not that many people have heard of

but what they're doing is really really

interesting and we're already up 45% on

that just in I think I just opened it a

few weeks ago actually uh yeah beginning

of the

month so you can if you're interested

you can go into way more depth on on

their website but they're basically

bringing

traditional finance and institutional

Finance onto the blockchain kind of

merging those two worlds that have been

a bit separate until now so you can go

into their docs here in huge Deb in huge

um huge detail if you're interested and

to give you an example here of something

cool that they're doing is

usdy so this is basically a a token

right a crypto token that is backed by

us

treasuries so you know say that you're

you only want to be exposed to crypto

but you would also like to like you like

the I don't know anonymity of crypto or

the the fact that you can maintain

control or maybe you're in a country

where it's difficult to get access to us

treasuries or or something along those

lines it's very very

cool that you can get access to that

kind of

institutional um type institutional

grade

Finance from a more

um from from a crypto point of view

right like traditionally there hasn't

been that much overlap between these

things so the people that are trading

crypto or interested in crypto just have

exposure to bitcoin or other crypt

native assets so being able to like

seeing the tokenization

of traditional Financial assets is is

really cool and I'm looking forward to

the days where you'll be able to have

other things like stocks just you know

um on on the blockchain that would be

very very cool and they're making a big

dent in that so um it's it's going to be

a huge market and I think it's it's

worth paying attention

to so that's Ono finance and you can

find their their docs here at docs.

condo. Finance if that's something

you're interested in learning more

about and then I also added a smaller

position in GTO which I might increase

GTO is kind of um Again part of the

salana ecosystem but they're really at

the heart of um salana liquid

staking uh really really cool what

they're

doing and um yeah I think it's going to

is going to perform continue to perform

well so these are the kind of positions

where they're way more they're way more

volatile you know if we look at the

chart of um those two that I've just

mentioned

so you can see

Ono we went from you know

one not even 90 cents to 120 very very

quickly right um same with GTO you can

see it's it's quite volatile so the

majors here Bitcoin Ethan Soul are

volatile as well but to a different

degree so it's good to kind of keep the

position size of these under

control so I might increase them

gradually but just got to always keep an

eye on

risk so that's our crypto positions at

the moment and we can have a look at how

that has this increase in crypto has

impacted our various stats so in terms

of performance you know April was quite

a draw Down May has basically completely

offset that so we're now up 44% for the

year as I'd

expected risk has ticked up a bit so we

now have had even though our average

risk has stayed at a five we hit a Max

risk of six at one point and seven is

the highest that I can go and ideally I

would like to keep it at

six um and we'll go into some other ways

that I'm going to be trying to trying to

do that

soon um here we can get a slightly

different perspective as well you can

see our exposure here is 86% crypto so

very very crypto

heavy and the other

13.8% is stocks again you can see the

risk

and so

on and this this little information box

here actually brings up an an

interesting point which is what I wanted

to discuss so these are the assets least

correlated with the current

portfolio now the reason this is

interesting is because as the focus is

crypto

now the stock part of our portfolio

becomes less and

less not less important but less about

out performance um because I expect the

majority of the gains to come from

crypto so the stocks sure we want to

invest in stocks that are going to

perform of course but they also are now

performing another function which is

equally important which is that of

balancing out the risk so if we have

stocks that are also very very volatile

the volatility and risk of the whole

portfolio is going to continue to

increase

whereas if we can have some stocks that

are not correlated or even inversely

correlated to crypto that's going to

bring the risk of the whole portfolio

down and that's what I'm going to be

trying to do um because all things

considered Bitcoin

eth they haven't been that

volatile when you

compare compare this to what like a bull

run is going to look like so if we do

soon see the market heat up in crypto

land which is what I expect volatility

is going to increase eoro risk is going

to

increase um so we might move up to a

risk level of seven which would be okay

but um we we definitely don't want to go

any higher than that um can't go any

higher than

that so we want to be anticipating that

and trying to tone the risk down by

having either stocks that uh

um yeah are are inversely correlated to

crypto or even other asset classes so

that's something that I'm going to be

thinking about whether that be some

Commodities or even some fixed income

just something to make the the portfolio

more balanced so today you might have

seen I've uh closed our paler position

as that was one that wasn't performing

that well was also quite volatile so it

wasn't really

uh doing well on on either of those

metrics and I think soon I might also

close potentially crowd strike and

Uber and just generally uh kind of

consolidate this

into yeah fewer positions that more

clearly achieve that that um objective

that I was just I was just talking

about so if we have a look at um what's

been going on

on bitcoin is really at an interesting

point where we are right near alltime

highs um but it's kind of going sideways

so this is usually in my experience a

sign of consolidation

before usually an aggressive move and

and that would line up with the stock to

flow Model cycle timing um all these

other

things so I wouldn't be surprised to see

um Bitcoin really moving soon um but so

far it's been relatively

calm um some interesting news that we've

had is the approval of the eth ETF which

I think was quite a surprise to many it

was I think the likelihood of this

getting approved was way way lower than

the Bitcoin one so there's an

interesting kind of narrative now where

I don't think this was just about the

eth ETF but it sort of feels like

there's a a

broader acceptance of crypto now um and

and that things might just continue to

now flow more more seamlessly so I

wouldn't be surprised if we now

see um Talk of a of a salana ETF and

maybe that getting that proved very

quickly you know we've we've kind of

passed that hurdle Bitcoin was the big

one um and now that eth passed to it

just seems like the the floodgates have

have opened but that that's still to be

seen and you can see that as well by the

reaction here right this

day was the day when it got approved or

at least seemed very likely that it was

going to be approved uh I can't remember

exactly what what day it

was but the huge move shows that um it

was it was a surprise right it wasn't

priced in people weren't really

expecting

it and so that's that's great it's

really great for

crypto um salana is looking sort of

similar to bitcoin maybe you can kind of

recognize the similar shape you know

this run up for a few

months um bit of a dip to you know shake

out any leverage and now just just

consolidating and again my my

expectation would be to see all of these

really starting to move in in t

as

um as things kick into gear after the

harving but we'll have to we'll have to

wait and

see so yeah I hope this has been useful

as always leave me any questions in the

comments if

uh um anyone doesn't have the time to

listen this I will have also written

a a short summary

and um yeah so just a reminder that I

will be changing likely changing a few

of these positions these stock positions

in in the very near

future and um I think that's about it

for today so I will speak to you again

soon and take care