Bitwise CIO recommends diversified investment across BTC, ETH, and crypto equity

IconCryptoNewsTerminal Staff24 Jul, 2024

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Bitwise CIO recommends diversified investment across BTC, ETH, and crypto equity

In his weekly note to clients, Matt Hougan, CIO of Bitwise Asset Management and issuer of the first bitcoin spot ETF, recommended a diversified crypto portfolio allocation of "60% BTC ETP, 30% ETH ETP, 10% crypto company ETP". Hougan's recommendation highlights the growing importance of diversification within the crypto asset class. While Bitcoin (BTC) and Ethereum (ETH) remain the dominant cryptocurrencies, they represent only a portion of the overall crypto market capitalization. By allocating a portion of a portfolio to crypto company ETPs, investors can gain exposure to a broader range of the crypto ecosystem, including stablecoins, decentralized finance (DeFi), and other emerging areas. It's important to note that the allocation percentages recommended by Hougan are not set in stone and can be adjusted based on an investor's individual risk tolerance and investment goals. The key takeaway is that diversification can help reduce portfolio volatility and enhance returns over the long term.

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