Out With the “Altcoin,” in With the Asset Class

2024-12-19 20:23

Following the U.S. presidential election, crypto’s headwinds have seemingly dissipated. Since early November bitcoin has reached $100K amid regulatory wins such as the nomination of crypto-friendly Paul Atkins to replace Gary Gensler as SEC chair, the naming of crypto advocate David Sacks as the incoming White House “AI and Crypto Czar,” and Congressman French Hill’s appointment to head the House Financial Services Committee. With election season coming to a crypto-favorable close in 2024, some are forecasting “altcoin” season, a period of outperformance for non-BTC crypto assets, to continue in 2025 — but is this the right way to characterize digital assets broadly?

Market commentators sometimes hastily sort the crypto economy into two oversimplified groups: 1) bitcoin (and now for some, ether) and 2) alternative or “alt” coins. In the early innings of digital assets, this dual categorization made sense as bitcoin was pioneering the use of blockchain technology and other use cases were still finding their footing. Nearly 16 years since bitcoin’s inception, an explosion of crypto innovation and sector-specific applications has pushed blockchain assets beyond the binary classification of bitcoin and “everything else.” Investors must now treat crypto as a diverse multi-sector asset class.

You're reading Crypto Long & Short, our weekly newsletter featuring insights, news and analysis for the professional investor. Sign up here to get it in your inbox every Wednesday.

Putting the constituents of the digital asset class in perspective

The “altcoin” moniker may give the impression that digital assets other than bitcoin lack in size and industry-specific purpose compared to components of other asset classes such as equity markets. Figure 1 below compares the market caps of similarly sized constituents of the S&P500 Index to those of prominent crypto assets ex-BTC, and shows similarities between these asset classes not only in terms of component size, but also in terms of sector diversification:

Figure 1: Market Caps of Top 25 (ex-BTC) Crypto Assets vs. S&P 500 Constituents Smaller than ETH

Not only do the stocks of certain well-known companies highlighted above resemble the top 25 crypto assets in size (ex: Solana has a market cap similar to that of UPS), but both asset classes also span a variety of industries within their respective markets. While the number of digital assets shown above is relatively sparse compared to the number of stocks, these crypto assets alongside the market’s new and innovative crypto projects are likely to continue expanding the size and breadth of the asset class even further over time.

Constructing diversified digital asset portfolios for the long-run

Taking a binary “bitcoin vs. alts” approach to digital asset investing may forgo portfolio construction benefits both within crypto investments and across your overall asset allocation. Obtaining thoughtfully constructed, diversified, and intentional exposure to all crypto sectors and use cases helps defray the risks of asset concentration, ensures your portfolio is exposed to the full value proposition of the asset class, and provides a larger number of return sources within your broader asset allocation. Given the fast-changing, innovative nature of the digital asset landscape, it is crucial to construct crypto allocations that can adapt alongside the breadth of the asset class. This can be accomplished by adopting a process to choose the universe of assets to include in your portfolio, adjusting this universe over time, and allocating sensibly to these assets via either passive or active management. Embracing the broader crypto economy as an asset class within your investment portfolio means allocating to digital assets via strategies that are built for the long-term.

Conclusions for an evolving asset class

Focusing on bitcoin vs. “everything else” may obscure the already meaningful and fast-growing footprint of many crypto assets and could cause investors to miss out on longer-term portfolio benefits associated with comprehensive investment within the asset class.

origin »

Altcoin (ALT) íà Currencies.ru

$ 0.0201971 (+0.00%)
Îáúåì 24H $0
Èçìåíåèÿ 24h: 0.00 %, 7d: 0.00 %
Cåãîäíÿ L: $0.0201971 - H: $0.0201971
Êàïèòàëèçàöèÿ $2.488k Rank 99999
Äîñòóïíî / Âñåãî 123.175k ALT

altcoin asset crypto max embrace freccia says

altcoin asset → Ðåçóëüòàòîâ: 126


Legendary trader predicts 6,400% price rally for new altcoin taking on Solana (SOL) and Cardano (ADA)

A renowned trader is predicting a significant 6,400% price surge for Rexas Finance (RXS), a new altcoin challenging both Solana (SOL) and Cardano (ADA) in the crypto market. Rexas Finance, focusing on real-world asset (RWA) tokenization, aims to revolutionize how investors access and trade assets such as real estate, commodities, and more.

2024-10-24 15:28


XRP Price Analysis: Ripple’s RWA Strategy To Send XRP Flying 4,000%, Altcoin Rival Sweeps Across With 7,000% Gain In 13 Days

In a rapidly evolving crypto landscape, Ripple’s innovative Real-World Asset (RWA) strategy is setting the stage for the XRP price to potentially soar by 4,000%. Meanwhile, the rising star ETFSwap (ETFS) has taken the market by storm, delivering an astonishing 7,000% gain in under two weeks, leaving investors eager for […]

2024-10-20 20:45


Why This Crypto Asset Is Bitwise CIO’s Best Contrarian Bet Right Now

In an interview with Aaron Arnold, founder of Altcoin Daily, Matt Hougan, the Chief Investment Officer (CIO) of Bitwise Asset Management, shared his optimistic outlook on Ethereum for 2025. Amidst a crypto landscape where Bitcoin and emerging high-performance blockchains like Solana, Sui, and Aptos dominate headlines, Hougan positions Ethereum as a “contrarian bet” that may offer significant returns for investors willing to look beyond current market sentiments.

2024-10-18 15:00


Ôîòî:

Binance completes 28th quarterly BNB token burn, billions of coins incinerated

The crypto market eyes new ATHs following Bitcoin’s recent uptick towards $68.5K. Amidst the optimism, exchange Binance unveiled vital updates about altcoin BNB. BNB’s massive token burns The Binance Foundation confirmed that the BNB Chain finalized its 28th quarterly asset burn, which saw the platform destroying tokens worth $971 million (1,643,698.8 BNB coins). BNB Chain […]

2024-7-22 11:30


Ôîòî:

Altcoin Season Looms: Ethereum’s Development Paves The Way, Here’s How

With the cryptocurrency market continuing to captivate investors around the globe, it is becoming important to comprehend the dynamics of the Altcoin season. Our Crypto Talk, a cryptocurrency channel, has offered in-depth insights on the subject based on the latest developments and price actions surrounding Ethereum, the second-largest digital asset. Is The Altcoin Season In […]

2024-5-30 06:00


XRP Heading To $100-$500? Analyst Provides Speculated Timeframes

Following an extended period of stasis, the price of XRP has suddenly begun to rise, fueling several bullish predictions regarding the altcoin’s direction from several cryptocurrency analysts.   Bullish Timelines For XRP The most current positive forecasts came from cryptocurrency expert and XRP enthusiast BarriC, who has established multiple timelines for the digital asset to rise to unprecedented heights in the long term.

2024-4-11 19:00


R100K – Transforming Crypto Investment With a Strategy Outperforming Bitcoin

R100K is emerging as a true disruptor in the crypto investment landscape, offering a distinct model that builds on Bitcoin’s growth. Moving beyond the conventional view of Bitcoin as the sole lucrative crypto asset, R100K introduces a strategic approach blending AI technology, altcoin diversification, and dynamic rebalancing, enhancing returns while managing risk.

2023-11-21 14:30


50% of Institutions Now Support Crypto Assets; AI Altcoin Breaks $3M Mark

The financial landscape is undergoing a seismic shift. With nearly 50% of asset managers now embracing top crypto coins, the winds of change in the investment world are undeniable. As institutional acceptance and support for crypto assets grow, a particular AI altcoin, InQubeta ($QUBE), has made headlines by surpassing the $3 million mark in its […]

2023-9-15 09:24


Why This Top Analyst Says He’s Going “All In” on Bitcoin Now

In a recent video by Altcoin Daily, a cryptocurrency channel boasting over 1. 3 million subscribers, the spotlight was cast on Bitcoin’s burgeoning role in the global financial landscape. The video featured Dylan, an astute cryptocurrency analyst, who meticulously dissected why Bitcoin is not just another asset but a necessity in today’s volatile economic environment.

2023-9-4 10:40


Bitcoin Can be the Digital Property for the Middle Class Says Entrepreneur Michael Saylor and Reveleas Reasons For Investing in BTC

One name stands out as a beacon of hope for the middle class: Bitcoin. This perspective is championed by none other than Michael Saylor, the founder of MicroStrategy, who has been vocal about the potential of this digital asset, in the recent interview for YouTube channel Altcoin Daily.

2023-6-30 19:30