Bitcoin ETFs bring in a new investor who bucks the 'HODL' culture and rebalances as bitcoin soars

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Crypto has always had a culture that encourages investors to 'HODL' through the rollercoaster ride of bitcoin's extreme fluctuations.

The cryptocurrency has become increasingly institutionalized in recent years and since the launch of exchange traded funds this year that track bitcoin's price, that trend is expected to increase – especially as different wirehouses, brokerages,"You have so many people in this community who are just diamond-handed holders," Donald Marron, director of economic policy initiatives at Urban Institute, said this week at the 2024 Vision conference in Austin, Texas.

, said investors should treat bitcoin "like any other asset … add it into a portfolio and include the rebalancing process" – pointing to bitcoin's traditional four-year cycle of three good years followed by a down year. Sharpe ratios help investors assess the return they get from an investment relative to the amount of risk they take.

 

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