Hashdex: Crypto: an emerging asset class for investors of all stripes

An emerging asset class for investors of all stripes

Crypto has emerged as the world’s most exciting asset class. Investors do not have to shy away from adding crypto to their portfolios because of its inherent complexities. It is possible to make informed decisions by understanding a few key concepts.

An allocation to crypto between 1% to 5% may improve outcomes with only marginal increases in risk¹. Because crypto is still a relatively new asset class, it is too early to predict which individual assets will be the most transformative. However, having broad exposure to the asset class is a great way to participate without the idiosyncratic risk of investing in individual crypto assets.

Crypto has emerged from being a passion project for a small group of technologists to a sector with thousands of projects and more than $1.9 trillion in assets². A survey³ found that roughly 63% of US adults consider themselves "crypto-curious" - a clear sign that interest in crypto is broadening accross demographics.

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¹Bitcoin returns sourced through Bloomberg, Portfolio analyzed through Zephyr from July 2016 to June 2021.
² Messari market cap data. As of March, 2022.
³Gemini. 2021 State of U.S. Crypto Report. April 21, 2021.