According to cryptopotato, Bitwise CIO Matt Hougan said that a diversified BTC and ETH portfolio can bring greater returns and less downside volatility than simply investing in Bitcoin. Hougan gave three reasons why this might be a good idea.
The first is diversification, Hougan wrote. Since predicting the future of cryptocurrencies is difficult, holding stakes in two major assets can provide investors with insurance in case one falls out of favor or cannibalizes the other over time.
Secondly, Hougan said that the fundamental differences between Bitcoin and Ethereum make it difficult to choose between the two. Bitcoin is optimized to be a "better currency", while Ethereum aims to be a "programmable currency" that can realize blockchain applications such as stablecoins and DeFi.
Ultimately, Hougan said the historical performance of both assets suggests they work best when they are balanced in a portfolio.