Should you buy Ethereum? Bitwise CIO shares 3 reasons to be bullish
The post Should you buy Ethereum? Bitwise CIO shares 3 reasons to be bullish appeared on BitcoinEthereumNews.com.
Matthew Hougan, Chief Investment Officer (CIO) at Bitwise Asset Management has shared his outlook for crypto – specifically why Ethereum may be good addition to an investor’s portfolio. Hougan said in an X post there are three reasons one may want to add ETH to their portfolio, and one other reason investors could choose to stick with a Bitcoin-only portfolio. Hougan cautions that his comments do not constitute investment advice. However, he thinks the upcoming launch of spot Ethereum ETFs in the US means most people may find this a good time to add the world’s second largest cryptocurrency to their wallets. Why consider ETH for a portfolio? According to Hougan, it’s down to diversification, Bitcoin and Ethereum’s use cases targeting different and historical analysis. There, three reasons. Commenting on the diversification aspect, he compares the investment landscape during the dot.com boom to the current crypto market. He wrote: “It is very hard to predict the future with precision. Ask any investor from the dot-com boom who bought AOL or Pets.com. They got the overall bet right—the internet is going to be big!—but the specifics wrong.” Today, crypto is an emerging technology with all the potential to change the world. But while it’s impossible to predict the future, one way to go about it is “own the market.” A scenario where its 75% BTC and 25% ETH could be “a good default starting place.” What does that mean? Today, the market cap for ETH, the crypto asset that powers the Ethereum blockchain, is about $420 billion. That’s about one-third the size of Bitcoin’s $1.3 trillion. The default starting place for many should therefore be about 75% Bitcoin and 25% ETH. — Matt Hougan (@Matt_Hougan) June 20, 2024 The second reason why the Bitwise exec thinks it might be wise to…
Filed under: News - @ June 22, 2024 4:22 am