Bitcoin, ethereum, solana: How to diversify your crypto portfolio

The crypto market is worth roughly $3 trillion, with bitcoin (BTC-USD) dominating the market, followed by ethereum (ETH-USD).

Solana Foundation head of institutional growth Nick Ducoff sits down with Market Catalysts host Allie Canal to discuss where solana (SOL-USD) fits into a diversified crypto portfolio. Ducoff also touches on how the government shutdown has slowed the approval of solana exchange-traded funds (ETFs).

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Video Transcript

00:00 Speaker A

There is this push to launch more crypto ETFs. We've seen various, uh, you know, brokerage firms saying that this is something they want to do more of. But money flowing out of those ETFs like we just said, is that a concern at all when it comes to supply and demand dynamics there?

00:20 Speaker B

I I think year to date flows are certainly net positive and I think you'll see them continue to grow over the next few years. Um, the Solana ETF filings um are are are obviously out. Fidelity, Vennec, Franklin Templeton, Bitwise and others. Um and many have recently updated their S1s to include fees, which is usually the last step in the process. So hopefully more ETFs coming soon.

00:51 Speaker A

And explain to me the difference when it comes to Bitcoin, Ethereum, you were just talking about Solana. I I feel like for early crypto adopters, maybe they're just concentrated on Bitcoin and Ethereum, why should Solana maybe be part of the conversation?

01:12 Speaker B

Yeah, so the the total industry market cap is somewhere around 3 trillion. Um, Bitcoin being, you know, the dominant um position in that. Ethereum being the second largest and Solana being right behind it. And so I think if you want to have um a diversified portfolio, you probably want exposure to all of them. But the important thing to remember is what the differences are between Bitcoin, Ethereum and Solana in terms of the asset as well as the technology. Bitcoin is typically seen as digital gold, Ethereum digital oil, and Solana is the fastest growing technology platform in the world. And so if you want to think about having exposure to the Mag 7, which has driven a large part of the S&P's growth this year, you also want to include Solana because it should be part of that um story with with meta, with with Google, with Open AI, with Nvidia, um and those types of companies.

02:05 Speaker A

And and how can investors get exposure to Solana? Is it through those ETFs as well?

02:10 Speaker B

Uh soon. We've got uh a number of um large asset managers including Fidelity have filed for uh Solana exchange traded products and and um the currently there's a government shutdown which has delayed uh the SEC approving some of these S1s, but I think you'll see them hopefully approved soon. There's also a large uh and and growing number of Dts, digital asset Treasury companies, similar to what strategy has done for Bitcoin. Um there are now a number of these um that are supporting the Solana ecosystem, including forward industries, which raised $1.65 billion dollars a couple weeks ago.

02:51 Speaker A

So, with these ETFs set to come down the pipeline, how is Solana really positioning itself to to grab that investor attention?

03:02 Speaker B

Yeah, I think it's a really clear narrative, which is Solana is among the fastest technology growing uh fastest growing technology companies in the world. and with staking, Solana also prints, you know, a 7, 8, 9% uh yield um by staking and generating the rewards from that.

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