Institutional investors are increasingly allocating to crypto, but the key question is whether to focus solely on $BTC or diversify across multiple crypto currencies to optimize risk-adjusted returns and portfolio resilience.
With a total market cap of over $3 trillion, crypto currencies represent approximately 1.5% of the market portfolio of all listed, investable assets that are easily accessible.
$BTC dominates the cryptocurrency market, accounting for 55% of the total market capitalization. The next 19 largest crypto currencies collectively make up around 33%, while the remaining 12% is distributed among all other crypto currencies.
By diversifying, investors can potentially benefit from the rise of new innovative projects and technologies within the space, aligning their portfolios with the broader developments in the digital economy.