ChainCatcher news: According to CryptoPotato, Bitwise Chief Investment Officer Matt Hougan said that a properly diversified BTC and ETH investment portfolio can achieve greater returns and less downside volatility than simply investing in Bitcoin.
Hougan offers three reasons why this might be a good idea. The first is diversification. Since predicting the future of cryptocurrencies is difficult, holding shares in both major assets can provide investors with insurance in case one falls out of favor or cannibalizes the other over time. Second, the different natures of Bitcoin and Ethereum make it difficult to choose between the two. Bitcoin is optimized to be a "better money," while Ethereum aims to be a "programmable money" that can enable blockchain applications such as stablecoins and DeFi. Finally, the historical performance of the two assets shows that they work best when the two are balanced in a portfolio.