The growth of digital currencies has grown the industry’s combined market cap which is now sitting at just over $830 billion.
According to an index fund by Bitwise Asset Management’s named Hold 10, there has been a $4 million investment by the accredited investors in the fund. What’s interesting is that these names include former PayPal chief operating officer and product leader David Sacks, a former PayPal executive Keith Rabois and a venture capitalist guru Naval Ravikant.
The CEO of Bitwise, Hunter Horsley, also had his say on the situation, claiming that “a vehicle like this, or passive index investing as an approach, is a great way for many people to participate in cryptocurrencies.”
A great reason to spread the love for investment is the portfolio balance. If one of the cryptocurrencies is doing really well, it can set off losses that you may have as a result of another crypto that is performing poorly. In other words, if you have a portfolio of investments, you cannot lose as much as you can from one cryptocurrency.
However, the crypto industry is extremely volatile and highly unpredictable. According to Horsley:
“We and our investors believe that a vehicle like this, or passive index investing as an approach, is a great way for many people to participate in cryptocurrency.”
At the end of the day, placing all of the eggs into one basket is a risky move for any investment and the sentiment also holds for the Hold 10 investors as well.
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