Bitwise Chief Investment Officer: A BTC and ETH portfolio can achieve greater returns and less downside volatility than investing solely in BTC

ChainCatcher news, according to CryptoPotato, Bitwise Chief Investment Officer Matt Hougan stated that a properly diversified BTC and ETH portfolio can yield greater returns and less downside volatility than simply investing in Bitcoin.

Hougan presented three reasons why this might be a good idea. First is to diversify investments. Since predicting the future of cryptocurrencies is difficult, holding shares of both major assets simultaneously can provide investors with protection in case one of the assets falls out of favor or is outperformed by the other over time; second, the inherent differences between Bitcoin and Ethereum make it challenging to choose between the two, as Bitcoin's optimization goal is to become a "better currency," while Ethereum aims to be a "programmable currency" that can enable blockchain applications such as stablecoins and DeFi; finally, the historical performance of these two assets indicates that they work best when balanced within a portfolio.