60/30/10 Portfolio: Building a Diversified Crypto Assets
With Bitcoin, Ethereum, and crypto stocks available for investment through ETPs (Exchange Traded Products), investors now have easier access to the crypto market. This was unimaginable 15 years ago: unfamiliar applications, private equity funds, and inefficient products were the only options, and they were expensive.
However, those days are gone. Now, with the launch of the Spot Ethereum ETP, investors can seize the biggest opportunities in the crypto space through low-cost, high-liquidity ETPs.
Suggested Portfolio Starting Point:
Bitcoin ETP: 60% Ethereum ETP: 30% Crypto Stock ETP: 10%
This basic portfolio is designed to cover the major parts of the crypto market, while having low costs and high liquidity.
Why diversify your crypto investments?
Simply put, crypto is more than just Bitcoin. It is a breakthrough technology with a wide range of applications:
New monetary assets (such as digital gold) More efficient financial sectors (such as DeFi) More efficient transfer of dollar-backed assets (such as stablecoins) Accelerated settlement of stocks and bonds (such as tokenization)
These are multi-trillion dollar markets. As an investor, you want to be able to get involved in all of these markets, not just Bitcoin or Ethereum.
Specific investment analysis:
Bitcoin (BTC)
Bitcoin is the largest and most well-known asset in the cryptocurrency space, mainly as a store of value and an emerging monetary asset. If you are worried about inflation or global currency depreciation, increasing your allocation to Bitcoin is a reasonable choice.
Ethereum (ETH)
Ethereum dominates the smart contract space and supports applications such as DeFi and tokenization.
The value growth rate of cryptocurrency companies has not been as fast as crypto assets in the past year, but their valuations remain attractive.
Customized portfolio:
The starting point is a 60/30/10 combination, but it can be adjusted according to personal needs:
Increase Bitcoin: Fight inflation and currency depreciation. Increase Ethereum: Bet on the growth of DeFi and tokenized applications.
Crypto Index Funds: Provide broader market coverage. Active and hedge investments: With different risk profiles. Venture capital investing in private companies and next-generation tokens.
