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Q: How should #advisor 's manage risks associated with digital assets?
A: Advisors should start with a formal cryptoassets policy that sets clear limits on allocation (e.g., max percentage of portfolio), approved instruments (spot, exchange-traded products, funds), counterparties, and custody standards (e.g., qualified custodians), in line with emerging regulation.
They should run proper risk assessments (market, liquidity, operational, cyber, legal) and use stress tests and scenario analysis specific to crypto’s volatility, rather than treating it like a traditional equity sleeve.
Finally, ongoing client education and documentation are crucial: explain risks in plain language, document suitability and risk tolerance decisions, and regularly revisit them as regulations and products evolve.

Q: Should #Diversification among digital assets go beyond blue-chip?
A: In most cases, yes, but only after a solid core in “blue chips” like BTC and ETH, which still anchor most institutional crypto allocations.
Beyond that, limited, clearly risk-aware exposure to selected alt-layers (L1/L2), DeFi, infrastructure tokens, stablecoins, and tokenized real-world assets can improve diversification, as long as liquidity, regulatory, and counterparty risks are acceptable.

Q: What is the importance of active investing in #DigitalAssets as opposed to the outdated passive investment formula?
A: In crypto, “set and forget” passive baskets can quickly accumulate dead or delisted tokens, because the technology, regulation, and market structure move faster than traditional equity indices.
Active management (underwriting) assets, such as regulatory changes, tokenomics, and competition, help advisors rotate out of obsolete projects and manage idiosyncratic risk while still using passive tools (ETFs, indices) as building blocks. This doesn’t mean daytrading; it means ongoing research, rebalancing, and governance rather than blindly tracking yesterday’s index.

Q: What are the key #indicator 's behind a strong digital asset and proper management of investments in the digital landscape? 
A: A strong digital asset usually has a clear purpose, proven security, growing real usage (transactions, users), and a sensible, transparent supply structure. 
Advisors should check that the asset is sufficiently liquid to enter and exit, and that the issuer or foundation operates in line with basic regulatory and security standards. In portfolios, this translates into simple rules: max position sizes, only liquid assets, and regular reviews to decide whether to keep, add, or exit.

Source: Binance News / Bitdegree / #CoinDesk / Coinmarketcap / Cointelegraph / Decrypt

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Executive #summary
As someone who has worn different hats over the years — chief investment officer, portfolio manager, and head of due diligence for third-party strategies, sometimes all at once — I’ve seen a wide range of approaches to using cryptocurrencies, particularly bitcoin, in investment portfolios. With the asset class’s rapid growth and increasing institutional adoption, every asset and portfolio manager must now answer the same question: How should digital assets fit into a multi-asset allocation?
Mandate clarity and risk discipline are essential — volatility, correlations, and tracking-error risk must all align with what a portfolio promises to deliver.Direct or indirect exposure can be valid, depending on a manager’s expertise and philosophy, but the long-term case for strategic, modest allocations is strengthening.

A New Tool in the #asset - Allocator’s Kit
From an allocator’s perspective, having a new asset class is exciting. But first things first: Can adding digital assets enhance long-term, risk-adjusted returns? Historically, yes. The forward-looking answer depends on continued market development.
The right approach always depends on a portfolio’s mandate. What did the portfolio promise its investors? What outcomes and behaviors should it deliver? Any new asset — including bitcoin — must be evaluated against those commitments.

Correlations, Risk, and Portfolio #Roles
For me, the most important characteristic of any asset class is its risk profile — not just in isolation, but in relation to the other assets in the portfolio. Low or declining correlations to traditional stocks and bonds are especially valuable. Bitcoin has shown moments of “risk-on” behavior and moments where it acts as a hedge, but its long-term correlation trend is moving lower. That’s appealing.
Given today’s vulnerabilities in equities (high valuations) and fixed income (inflation, debt, and credit concerns), any asset with a differentiated return stream deserves serious fiduciary consideration.
Still, mandates matter — and so does volatility. While digital asset volatility has moderated as the market has grown and institutional involvement has deepened, it remains high. That can constrain risk budgets or limit potential position sizes.
Another consideration is tracking-error risk — the degree to which an asset behaves differently from the “TV Benchmarks” like the Dow, S&P 500, and Nasdaq. When an asset significantly diverges from those benchmarks, especially during periods of relative weakness, many investors find it psychologically difficult to hold. This challenge applies to all alternatives, crypto included.
When the groundwork for mandates, expectations, and communication is well laid, digital assets can earn a place in diversified portfolios. They have historically improved outcomes, and I believe they will continue to do so as the market matures.
As for allocation size, my view is that a long-term strategic weight in the low single digits is appropriate for most diversified portfolios — at least until the asset class’s volatility moves materially lower, which I expect will happen over time.

Indirect Exposure Still #Matters
Some high-quality portfolio managers who believe in the digital asset story choose not to invest directly. Instead, they gain exposure through companies and infrastructure providers positioned to benefit from digital asset adoption. This is a perfectly valid approach — especially when a manager’s core strengths lie in equity research and portfolio construction.

Closing
Digital assets are no longer theoretical — they’re investable, increasingly institutional, and here to stay. Whether accessed directly or indirectly, they deserve thoughtful consideration within the broader asset-allocation framework.

Source: Binance News / Bitdegree / #CoinDesk / Coinmarketcap / Cointelegraph / Decrypt

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Bitcoin has lost a third in seven weeks, and folks want answers. The prevailing sentiments among the podcasts, Substack articles, newsletters and socials are:
The most recent leg down caught many folks off guard.There are plenty of technical explanations: ETF outflows, DATs < mNAV, 10/10 damage, retail focused elsewhere and end of the "cycle."There are plenty of macro explanations: Fed rate cut probability decreasing, lingering damage from the government shutdown and the Clarity Act delay.Hey, this is crypto, it draws down by 1/3 sometimes.Sentiment is max negative.Possibly setting up for a rally, but maybe not in time to save 2025.

The crowd seems to have navigated the five stages of grief and emerged humble and sanguine. (A nagging question: was there enough grief, or is this another false bottom? Did capitulation occur?)

The humility, in particular, was most welcome, and best captured in Eric Peters's superb "wknd notes." With a wink, he alludes to the most vacuous form of market commentary, "There are more #sellers than buyers."

"..what we mean when we say that markets move because there are more #buyers than sellers is that when prices start to really move, it’s okay to not understand why. We say this to remind ourselves that anything can happen. It’s a protective mechanism.”

He reminds us that humility is not only a virtue, but necessary for survival:

“Investors who blow up and lose everything tend to believe that they know exactly why a market should be moving. They may believe it should move higher, and get stubbornly longer, leveraging up even as it moves lower, and lower and lower. Or vice versa. The survivors in this game have watched enough people destroy themselves in such a way that we prefer to accept the wisdom of markets. We learn that when prices fall even as most traders/investors think they should rise, there must be a reason. We just don’t know it yet. Sooner or later, we will."

One manager's #view

It's all well and good to be humble and sanguine, but when you are running two hedge funds, you also have to make decisions. On Friday, I brought Chris Sullivan from Hyperion Decimus on for a CoinDesk Markets Outlook spot. (Disclosure: Hyperion Decimus is a client of CoinDesk Indices.)

We agreed (both being derivatives people) that market volatility, while anxiogenic, can also be exhilarating. A roller coaster. Chris sees a V-shaped event ahead, declaring that it is (or will soon be) time to "feast on fear." We also agreed that seeing more developed put skew in bitcoin in the last few weeks was a healthy sign that the market is maturing (i.e., that recent downside hedging resembles more mature asset classes). Two more observations: 1) big wallets which may have sold above 100k appear to be buying back 20% lower and 2) trend signals have allowed his funds to step out of the way weeks ago and have plenty of dry powder.

Trend has been a good friend in #2025

Speaking of trend, it is turning out to be a savior of 2025 performance.  Our Bitcoin Trend Indicator (BTI), launched in March 2023, uses a quartet of moving average crossover signals to indicate the presence and strength of trend in the price of bitcoin. It has indicated "Significant Downtrend" for 24 days. Our clients have implemented several strategies based on BTI to allocate to — and away — from bitcoin. The YTD performance of one of those appears below.

As more and more investors and advisors adopt bitcoin and crypto into long-term portfolios, a trend overlay can help "smooth the ride" and keep folks in the game. It's especially pertinent now, as concerns that self-fulfilling "end-of-cycle" behavior weigh on bitcoin's price.

Source: Binance News / Bitdegree / #CoinDesk / Coinmarketcap / Cointelegraph / Decrypt

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The October 10th crash continues to reverberate in the crypto market with broader softness across sectors. It’s especially notable in #defi , the lifeblood of on-chain activity today, and the one sector that generates the majority of crypto token revenue.

Let’s take a quick glimpse of where we are. Of a subsect of 23 leading DeFi names across the decentralized exchange #DEX , lending and yield verticals, only 2 are positive YTD as of November 20, 2025. QTD, the group is -37% on average, highlighting the damage this extended selloff has done. But the mixed price action reveals some nuances.

1) Investors seem to be opting for safer (‘buyback’) names or allocating to names with fundamental catalysts. On the buyback side, names like HYPE (-16% QTD) and CAKE (-12%) posted some of the best returns for larger market cap names in the cohort, indicating investors may be allocating to them or that their price has been supported by their substantial buybacks. Meanwhile, MORPHO (-1%) and SYRUP (-13%) both outperformed their lending peers on idiosyncratic catalysts, such as minimal impact from the Stream finance collapse or seeing growth elsewhere.

2) Certain DeFi subsectors have become more expensive, while some have cheapened relative to Sept 30, underscoring the changing landscape post the October 10 crash. Spot and Perp DEXes have seen declining P/S multiples as their price has declined faster than protocol activity. In fact, some DEXes such as CRV, RUNE and CAKE have posted greater 30D fees as of Nov 20 compared to Sep 30. We’re seeing similar trends across perp DEXes with HYPE and DYDX multiples compressing faster than declines in their fee generation.

3) #lending and #yield names have broadly steepened on a multiples basis, as price has declined considerably less than fees. For example, KMNO’s market cap fell 13% over this period, while fees declined 34%, according to data from Artemis. Another factor may be that investors are crowding lending names in the selloff, considering lending and yield-related activity is often seen as stickier than trading activity in a downturn. Lending activity may even pick up as investors exit to stablecoins and seek yield opportunities.

This positioning may reflect where investors think the DeFi sector will see growth in 2026. On the DEX front, QTD performance suggests investors expect perps to continue to lead, and HYPE’s relative outperformance may point to investor optimism around its ‘perps on anything’ HIP-3 markets, which are seeing their highest volumes as of Nov 20. On the other hand, the only crypto trading category seeing record volumes lately are prediction markets. Therefore, the cheapening in the DEX sector may be warranted on lower growth expectations. On the lending side, investors may be looking to more fintech integrations to drive growth. AAVE’s upcoming high-yield savings account and MORPHO’s expansion of its Coinbase integration are recent examples of this trend.

Overall, these trends reveal potential opportunities from dislocations in the wake of 10/10. It will be interesting to see if the changes mark the beginning of a broader shift in DeFi valuations or if these will revert over time.

Source: Binance News / Bitdegree / #CoinDesk / Coinmarketcap / Cointelegraph / Decrypt

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The crypto market hit "snooze" over the last 24 hours. Bitcoin (BTC) shuffled aimlessly between $86,000 and $88,000 and the CoinDesk 20 Index (C20) barely budged. Meanwhile, the CoinDesk 80 Index managed a modest flex with a 1% gain, indicating pockets of strength in the broader altcoin market.

Zooming out, the picture looks even more lackluster. Bitcoin is down 7% year-to-date, while the U.S. 10-year Treasury note, that unexciting, fixed-income instrument is up 2.5%.

What this means is that parking your cash in boring old bonds would have been the smarter move this year. And that's despite truckloads of BTC buying by digital asset treasuries. Sorry, maximalists.

From a macro perspective, the outperformance of the 10-year bond, a perennial safe haven, rings alarm bells for other risk assets, including stocks. This plays right into the theme we discussed last week: Institutional outflows from the spot bitcoin ETFs may be the smoke before the expected macro firestorm.

Sure, the script could change ahead of the year-end, especially if the Federal Reserve delivers an outright dovish message with the expected 25 basis point rate cut early next month, sending the Dollar Index (DXY) lower. For now, however, the index is looking to establish a foothold above its 200-day simple moving average (SMA), unfazed by the dovish Fed hopes.

It's not as though options flows are offering any directional clarity.

Early this week, we saw a spike in hedging activity around the $80,000 bitcoin put, followed by hefty block trade hinting at a possible range reboot above $100,000 by year-end. On Tuesday, a wild $220,000 call purchase seemed bullish at first, but it was paired with a $40K call buy, signaling the trader’s real bet is on volatility fireworks, Greeks.Live told CoinDesk.

All this points to a challenging trading environment in the near-term.

That said, one piece of positive news has gone largely unnoticed: the new U.S. bank rule reducing capital requirements for low-risk assets like Treasuries. The capital reduction is seen freeing up liquidity at banks, potentially boosting lending and boosting dealers' ability to intervene in government bond markets during times of stress.

James Thorne, the chief market strategist at Wellington-Altus Private Wealth, described the move as a clear sign of "deregulation on the way." Stay alert!

Source: Binance News / Bitdegree / #CoinDesk / Coinmarketcap / Cointelegraph / Decrypt

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Bitcoin (BTC) showed signs of a Thanksgiving week rally on Monday, almost reclaiming $90,000 and offering a ray of hope that the weekend's recovery from below $85,000 may turn into something a bit more sustained. The optimism was short-lived, with BTC dropping back to $87,000 during the European morning Tuesday.

The CoinDesk 20 Index (CD20) also looked like it was getting into the holiday spirit rising almost to 3,000 before retreating around 3% to 2,485.84, showing that across the crypto market, buyers are operating with caution rather than conviction.

Part of the explanation for this sedate mood could in the #US holiday period. With Thanksgiving two days away, liquidity can be expected to dry up and risk-taking to minimize, according to Emir Ibrahim, an analyst at #Australia 'n digital asset investment firm Zerocap.

Ibrahim noted that during last week's volatility, crypto traded as a high-beta proxy to weakness in the U.S. tech industry.

"The key dynamic is that all of BTC’s weekly negative PNL came from the U.S. trading session, while APAC and #Eu ’s hours were mostly flat-to-positive," he wrote in an emailed comment, using an acronym for profit and loss. "That leaves little doubt that both the global credit crunch and the U.S. equity unwind are driving the drag."

Far from establishing itself as a haven from broader financial choppy waters, as its moniker as "digital gold" might indicate, bitcoin is again resembling the nervous younger sibling of the U.S. tech industry.

The Crypto Fear & Greed Index remains firmly in the "extreme fear" cellar on a rating of 15, albeit a slight improvement from yesterday's 12. It fell to a yearly low of 10 on Saturday. This movement does not guarantee that the floor is in, but it reinforces that the next directional moves are likely to be more about macro shifts than trader vibes.

Another cause for bulls to put on a brave face could lie in the average funding rate, a measure of the cost of holding both long and short positions. This slipped negative for the first time in a month and indicates an overabundance of bearish bets and therefore the potential for a classic short squeeze.

This could spell a continued price recovery as we head into December, provided macroeconomic conditions don't spoil it. Stay alert!

Source: Binance News / Bitdegree / #CoinDesk / Coinmarketcap / Cointelegraph / Decrypt

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