From Yahoo Finance: 2025-05-26 12:01:00

Bitwise CEO Hunter Horsley believes the era of investing in cryptocurrencies based on market capitalization is coming to an end. He suggests a new approach similar to investing in companies on Wall Street. Bitwise CIO Matt Hougan advises investors to diversify beyond Bitcoin and consider various verticals in the cryptocurrency market.

Horsley predicts the end of selecting cryptocurrencies based on rankings like CoinMarketCap. He emphasizes the importance of building a thesis around the business and its market prospects, similar to traditional investing. Narrative-driven investing gains traction as new sectors like tokenization and AI projects emerge in the market.

Hougan compares the cryptocurrency landscape to the early days of the internet, urging investors to own a basket of crypto assets rather than focusing on picking winners. He emphasizes the difficulty of predicting which vertical will outperform in the next decade due to blockchain’s general-use technology.

With thousands of projects to choose from, new investors may feel overwhelmed by the risks associated with smaller projects. CoinGecko reported that over 50% of cryptocurrencies have failed, highlighting the importance of thorough research before investing. Investing in a diversified portfolio is recommended to mitigate risks in the volatile cryptocurrency market.



Read more at Yahoo Finance: Bitwise CEO Says, ‘CoinMarketCap Leaderboard Era Of Crypto Is Close To Its End,’ Backs Thesis-Based Investing