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The Smartest Way to Build a Diversified Cryptocurrency Portfolio

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Cryptocurrencies are notoriously volatile investments, but you can reduce that volatility by spreading your cash across multiple tokens. Instead of doing that by yourself, it’s smarter to invest in a diversified exchange-traded fund (ETF) like the Bitwise 10 Crypto Index Fund ETF(NYSEMKT: BITW).

A digital visualization of a cryptocurrency on a blockchain.

Image source: Getty Images.

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What does the Bitwise 10 Crypto ETF actually own?

BITW tracks the market’s ten largest cryptocurrencies by market cap, and rebalances those holdings monthly to reflect their fluctuating values. It’s monitored daily and uses built-in screens to remove assets that face “certain technical, custody, liquidity, and regulatory risks”. The fund has $723 million in assets under management, and it charges a sponsor fee of 0.75%.

As of this writing, BITW’s top four holdings are Bitcoin(CRYPTO: BTC) (77.2% of its portfolio), Ethereum(CRYPTO: ETH) (14.3%), XRP(CRYPTO: XRP) (4.4%), and Solana(CRYPTO: SOL) (2.5%). None of its remaining six tokens account for more than 1% of its portfolio. Coinbase‘s Custody Trust serves as its custodian for those digital assets.

BITW only trades slightly above its net asset value (NAV) of $47.66 per share, and it’s stayed roughly flat over the past 12 months as many smaller cryptocurrencies crumbled. While BITW might underperform some of the market’s hottest cryptocurrencies, it provides a simple, well-balanced way to profit from the crypto sector’s expansion without taking on too much risk.

Should you buy stock in Bitwise 10 Crypto Index ETF right now?

Before you buy stock in Bitwise 10 Crypto Index ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitwise 10 Crypto Index ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $556,335!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,160,572!*

Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of April 14, 2026.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, and XRP. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.



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