TechFlow news, according to cryptopotato, Bitwise CIO Matt Hougan said that a diversified portfolio of BTC and ETH can deliver greater returns and less downside volatility than investing solely in Bitcoin. Hougan offered three reasons why this might be a good idea.
First, Hougan wrote, is diversification. Given the difficulty of predicting the future of cryptocurrencies, holding both major assets provides investors with protection in case one falls out of favor or gradually overtakes the other over time.
Second, Hougan noted that the fundamental differences between Bitcoin and Ethereum make choosing one over the other challenging. Bitcoin is optimized to be "better money," while Ethereum aims to be "programmable money," enabling blockchain applications such as stablecoins and DeFi.
Finally, Hougan stated that the historical performance of these two assets suggests they perform best when balanced within a portfolio.
