- Bituse Cio begged crypto investors to go beyond Bitcoin.
- Some crypto indices surpassed BTC in the last five trading days.
Bitwise Cio Matt Hougan has defended a diversified crypto portfolio after that of last week Ethereum [ETH] 37% pump put aside many investors.
ETH fell 60% in the past four months in the middle of increased FUD and the total headwind linked to the rate war in the US china.
This pushed some investors to Bitcoin and other altcoins such as Solana [SOL] and wrinkle [XRP]. As a result, last week’s ETH pump may have surprised many.
Go further than BTC, says Hougan
To take advantage of such a chance, Hougan urged investors to go beyond BTC.
“Bitcoin is the king of Crypto assets -the largest, most liquid and most established. And yet I think that most investors have to have other crypto assets.”
He referred to the early internet tree in 2004, where Google dominated the search market.
But the internet was the general purposes (tech) that supported various verticals and segments, such as social media, retail, video, B2B software etc.
From 2025, Google did well, but other leaders in important verticals such as Netflix performed exceptionally well, something that was not clear in 2004, Hougan added.
Source: Bitwise
Hougan believed that a similar scenario could play for block chains, which he equalized to technical technology such as the internet.
“You can use a blockchain to create a better form of money (Bitcoin) or to make a programmable network for transferring” Real-World assets “(Ethereum, Solana, Avalanche).”
He added that every network can offer different returns over time.
“For example, if you are intrigued by the idea of almost all the assets of the world that move onchain – suggests that you want to have a basket with Crypto assets: Bitcoin, Ethereum, Solana, Chainlink and more.”
Source: Bitwise
The diversified crypto portfolio is the idea behind Crypto Index ETFs. From a traditional perspective, Hougan even noticed that individual stock funds are left behind at Indices.
“Over the past 20 years, the managed US stock funds have actively disadvantaged their benchmark indexes 97% of the time.”
Interestingly, Google Finance data about the lower 5-day period of time supported its position.
Compared to other crypto indices such as Bit Wise Crypto 10, Hashdex Crypto Index and S&P Crypto Megacap Futures, BTC ralled less than 1%. But the crypto indices and ETH rose by 13% in the same period.
Simply put, BTC investors could have won an extra 13% or more if they were diversified via ETFs or directly to other crypto assets or directly.