Crypto for Advisors: Rethinking Cryptocurrency Diversification

CoinWorld reported: Investors are expanding their cryptocurrency portfolios beyond bitcoin, as the total market capitalization of cryptocurrencies excluding bitcoin has grown by 175% since 2023. Analysts point out that the increasing diversification of digital assets—from infrastructure and decentralized finance (DeFi) to real-world assets—requires a strategically diversified investment approach that focuses on underlying risk factors and business models, rather than simply accumulating tokens. Benchmark indices like the CoinDesk 20, which represent 90% of the cryptocurrency market, are designed to provide a structured and highly liquid way to achieve such diversified portfolios.