The Chief Investment Officer of Bitwise encourages cryptocurrency investors to look beyond Bitcoin.
Some cryptocurrency indices have outperformed BTC in the last five trading days.
Matt Hougan from Bitwise recommended diversifying the cryptocurrency portfolio after Ethereum [ETH] surged 37% last week, catching many investors off guard.
ETH has dropped 60% in the last four months due to concerns and challenges related to the US-China trade war.
This has pushed some investors towards Bitcoin and other coins like Solana [SOL] and Ripple [XRP]. Therefore, last week's ETH pump may have surprised many.
Beyond BTC, Hougan said
Hougan urges investors to seize opportunities and move beyond BTC.
"Bitcoin is the king of cryptocurrency assets—the largest, most liquid, and oldest. However, I think most investors should own other cryptocurrency assets."
He compared it to the internet boom of the early 21st century, where Google dominated the search market.
However, the internet is the technological layer that supports many verticals such as social networks, retail, video, B2B software, etc.
In fact, by 2025, Google is still performing well, but leading companies in industries like Netflix are doing exceptionally well, which was not evident in 2004, Hougan said.
Source: Bitwise
Hougan believes a similar scenario could happen with blockchains, much like internet technology.
"You can use blockchain to create a better form of money (Bitcoin) or create a programming network for the transfer of 'real-world assets' (Ethereum, Solana, Avalanche)."
He added that each network can yield different profits over time.
"If, for example, you are drawn to the idea that almost all the world's assets will move onto blockchain—history has shown that you should own a basket of cryptocurrency assets: Bitcoin, Ethereum, Solana, Chainlink, and more."
Source: Bitwise
The idea of diversifying the cryptocurrency portfolio is precisely what lies behind cryptocurrency index ETF funds. From a traditional perspective, Hougan noted that individual equity funds often lag behind indices.
"In the last 20 years, 97% of actively managed US equity funds have failed to outperform their benchmark."
Interestingly, data from Google Finance, over a 5-day timeframe, supported his theory.
Source: Google Finance (Performance as of May 14, 6:54 UTC)
Compared to other cryptocurrency indices like Bitwise Crypto 10, Hashdex Crypto Index, and S&P Crypto MegaCap Futures, BTC has only risen less than 1%. However, cryptocurrency indices and ETH have increased by 13% during the same period.
In summary, BTC investors could have earned an additional 13% or more if they had diversified into other cryptocurrency assets through ETFs or directly.
Source: https://tintucbitcoin.com/ethereum-tang-37-co-hoi-moi-tu-bitwise/
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