Golden Finance reported that Bitwise CIO Matt Hougan said that a properly diversified portfolio of BTC and ETH can achieve 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 to diversify investments, Hougan wrote. Since it is difficult to predict the future of cryptocurrencies, holding shares of two major assets at the same time can provide investors with protection in case one of the assets falls out of favor, or swallows up the other over time. Secondly, Hougan said that the different natures of Bitcoin and Ethereum make it difficult to choose between the two. Bitcoin's optimization goal is to become a "better currency," while Ethereum aims to be a "programmable currency" that can realize blockchain applications such as stablecoins and DeFi. Finally, Hougan said that the historical performance of the two assets shows that they work best when the two assets are balanced in the portfolio.