Is a Bitcoin–Ethereum ETF worth it? A recent analysis detailed an equally weighted portfolio for the two largest crypto assets in the market to better understand the value proposition for investors.

In a significant move for the cryptocurrency market, the US Securities and Exchange Commission (SEC) has given the green light to a spot Bitcoin–Ethereum exchange-traded fund (ETF).

Previously, the regulator had already confirmed the receipt of the 19b-4 filing for the Hashdex Nasdaq Crypto Index US ETF. If it receives an approval from the SEC, estimated by March 2025, the product will include the two largest cryptocurrencies on the market, Bitcoin and Ethereum, in its portfolio.

Is a Bitcoin-Ethereum ETF worth it? An analysis shared by the Kaiko platform on July 5 was based on an assessment of the portfolio of BTC and ETH weighted during the 2021 rally and this year’s record highs. According to the analysis, the return could have been 58% by 2024.

“Analyzing an equally weighted portfolio of Bitcoin and Ethereum during the 2021 bull run and this year’s record highs in January, we find that it would have returned 58% in 2024, compared to 20.6% in 2021,” the report noted.

The analysis highlighted that traditional investors could be attracted to the ETF product that will combine Bitcoin and Ethereum not only for the returns but also for the improved risk profile of a BTC/ETH portfolio.

“Using a 99% confidence interval for VaR, one of the most conservative levels used in traditional finance, we can see the daily profit and loss realized during the Q1 bull run. The BTC/ETH portfolio maintains a manageable level of risk and a balance of profits and losses. Assuming a 99% VaR of $10,000, statistically, we will have $10,000 in losses 1 day out of every 100, which we see below.”

Analysts explained that VaR is a risk indicator that assigns a dollar value to potential portfolio losses and their probability.


The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.


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