With Ethereum ETFs approaching in the US, should existing Bitcoin ETF holders split their crypto holdings into ETH? Bitwise CIO Matt Hougan offered three reasons why this might be a good idea.

First, because crypto's future is difficult to predict, holding stakes in both leading assets could provide relief to investors if one asset falls out of favor or eats away at the other over time.

Second, the fundamentally different nature of Bitcoin and Ethereum makes it difficult to choose between them. While Bitcoin is optimized to be “better money,” Ethereum is designed for “programmable money,” enabling blockchain applications like stablecoins and DeFi.

Finally, the historical performance of both assets shows that they work best when balanced together in a portfolio. For example, a “traditional” 60/40 portfolio with a 5% crypto allocation had a higher cumulative return (56.32%) over the past four years when weighted 70/30% between BTC and ETH allocations.

However, Hougan said there is one main reason why investors may still want to just stay in BTC. “It is very likely that Bitcoin will be dominated by the new form of ‘money’ emerging in crypto,” he said.