In today’s Crypto for Advisors, Dovile Shenskyte de Wisdomtree talks about the growth of cryptographic products and how they have evolved into a strategic investment allowance.
Then, Kim Klemballa de Coindesk Indices answers questions on the references and trends of digital assets to request an expert.
– Sarah Morton
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The evolution of crypto products – from speculative bets to strategic assets
The crypto is no longer the “far west” of the investment. Once rejected as simple speculative bets, digital assets have matured in a credible and increasingly strategic component of institutional portfolios.
Figure 1: World Assets under Management (AUM) in physical crypto
Source: Bloomberg, Wisdomtree. April 01, 2025. Historical performance is not an indication of future performance and any investment can drop in value.
At the end of the first quarter of 2025, global assets under management (AUM) in physical products negotiated in Bitcoin (ETP) were more than $ 100 billion. This figure signals a deep and sustained conviction on the part of institutional investors, which means that it is no longer just the field of the first adopters. Today, sovereign funds, retirement patterns and asset managers allocate to large -scale crypto.
After more than 15 years of development, multiple cycles of boom and boust and a world user base exceeding half a billion people, Crypto proved that it was not a trend of passage. Bitcoin has become an active macro crypto – rare, decentralized and more and more positioned as a basic holder in diversified multi -network wallets.
But here are the sockets – crypto allowances are always underestimated.
Despite increasing adoption, most cryptographic portfolios remain closely concentrated in Bitcoin. It is a state of mind inherited and fundamentally defective. Investors would not allocate their entire exposure to actions in Apple, nor would there be a single obligation to represent fixed income securities. However, this is precisely the number of treatments in the crypto.
Diversification is fundamental in traditional finance. It distributes the risks, improves resilience and unlocks access to wider assemblies of opportunities. The same principle has digital assets.
The universe of cryptocurrency has extended far beyond Bitcoin, evolving towards a dynamic ecosystem of distinct technologies, use cases and investment theses.
Platforms of intelligent contracts like Ethereum, Solana and Cardano build decentralized infrastructure for everything, from decentralized finance (DEFI) to non-fastible tokens (NFT), each with unique compromises of scalability, security and network design. Meanwhile, Polkadot advances interoperability, allowing transparent communication between channels – a key construction element for a multi -chain future.
Beyond these layer 1 blockchains, we see a rapid innovation in:
- Real token of the world (RWA) where traditional finance meets blockchain rails
- DEFI protocols supplying loan, trading and decentralized liquidity solutions
- Web infrastructure3, from decentralized identity to storage, forming the backbone of a more open internet
Each of these sectors has its own risk yield profile, adoption curve and regulatory trajectory. Treating them as interchangeable, or worse, ignoring them completely, is similar to the reduction in global investment on actions in a single technological actions. It is not only obsolete – it is strategically ineffective.
The diversification of crypto does not consist in avoiding risks, but rather in capturing the complete spectrum of innovation. In a multi-chain world, multi-thories, not diversifying means leaving the opportunity on the table.
The case of cryptographic indices
The reality is that most investors do not have time, tools or technical expertise to follow the 24/7 cryptographic markets. Cryptographic indices offer a powerful solution for those looking for a wide and systematic exposure without having to dive into the Tokenomics, the availability of the validator or the network upgrades.
Just as equity investors are counting on references such as S&P 500 or MSCI indices, diversified cryptography indices allow investors to passively access the market – with a scale, structure and simplicity. No conjecture, no selection of tokens, no need for constant rebalancing. Clean exposure and based on rules to the landscape of evolving cryptography.
– Dovile Silenskyte, Director of digital asset research, Wisdomtree
Ask an expert
Q. Why is diversification important in crypto?
A. Among more than 20,000 listed cryptocurrencies, Bitcoin now represents around 65% of total market capitalization. Diversification is essential for institutional investors in order to manage volatility and seize wider opportunities. Clues can be an effective way to follow the performance of asset classes, while products such as funds negotiated in exchange (ETF) and managed accounts separately (SMAS) can provide exposure to several cryptocurrencies at the same time, potentially helping to spread the risks.
Q. What trends do you see in digital assets?
A. Institutional investors enter the market, pushing the digital assets of a niche investment in a key asset class. Ey-Parthenon and Coinbase conducted a survey of more than 350 institutional investors around the world in January 2025. Investors questioned, 87% plan to increase global crypto allowances in 2025, covering a variety of options such as stock market products (FTEs), investments in digital splint companies thematic mutual funds. According to the survey, 55% hold the crypto spot via ETPs, with 69% of those who plan to have a punctual cryptography which plans to do so using recorded vehicles.
Q. Is a reference to vast exist in crypto?
A. There are large references in digital assets. At Coindesk Indices, we launched the Coindesk 20 index in January 2024 to enter the performance of the best digital assets and act as a gateway to measure, exchange and invest in the constantly expanding cryptographic asset class. Designed with liquidity and mind diversification, Coindesk 20 has generated an unprecedented volume of total negotiation of $ 14.5 billion and is available in twenty investment vehicles worldwide. Coindesk indices also have the Coindesk 80 index, the Coindesk 100 index (Coindesk 20 + Coindesk 80) and the Coindesk Memecoin index, among others.
– Kim Klemballa, marketing manager, Coindesk indices
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