Bitcoin ETF New Era – 5 Best Cryptocurrencies To Hold in a Traditional Investment Portfolio

cryptonews.com:

Thursday, January 11, 2024 – Eleven spot Bitcoin ETFs have been approved by the US Securities and Exchange Commission (SEC) and start trading today.

The greenlight for the first ever spot crypto ETFs in the US throws open the doors for institutional and retail investors. It provides a regulated and easy way to gain exposure to the nascent digital asset class.

In the light of this earthquake-like inflection point for crypto, it begs the question, which are the best cryptocurrencies to hold in a traditional investment portfolio?

Bitcoin is of course the oldest and most well-known of cryptocurrencies, but its arrival in the mainstream is sure to be followed by other crypto, so a widening vista of choice awaits the savvy investor.

The Ethereum price has jumped nearly 15% in the past 24 hours as market participants bet it will be the next crypto to be approved for an ETF wrapper. Ripple’s XRP token is up 6%.

So where should the TradFi and crypto natives start their investment journey in this exciting new landscape? We have all the answers.

Traditional investment portfolios come in many different shapes and sizes, but all should be constructed taking into account an asset allocation perspective. The main determinant of investment returns is the choice of asset to allocate to, not the selections made within each asset class.

This means first determining the weighting to be given to each asset class. A typical portfolio will allocate from among the following asset classes:

There are two ways of accessing asset classes – buying them directly or holding them in a wrapper like an exchange-traded fund, a mutual fund or an investment trust.

For crypto investors, holding assets directly has been the only or main way to include them in an