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Bitwise CIO: Investors can configure Bitcoin, Ethereum and Crypto Stock ETPs by 60/30/10

Matt Hougan, chief investment officer at Bitwise, wrote that investors can make 60/30/10 portfolio allocations, namely Bitcoin ETP: 60% allocation; Ethereum ETP: 30% allocation; and crypto stocks ETP: 10% allocation. He chose these weights because 60-30-10 broadly reflect the market capitalization of each asset, and investors may want to customize their risk exposure by overweight or underweight certain segments. For example: Bitcoin: Bitcoin's main use today is as a store of value and an emerging currency asset. If you are worried about your portfolio as a hedge against inflation or global currency depreciation, you will need to increase your bitcoin holdings. Up the ante Ethereum: The main use of Ethereum today is as a smart contract platform to support applications such as DeFi and tokenization. If you want to bet on the growth of these applications, you need to increase your holdings of Ethereum. Cryptocurrency companies up the ante: Cryptocurrency companies have lagged behind crypto assets over the past year. Adjusted for growth, valuations for cryptocurrency companies are attractive.