Crypto for Advisors: Beyond bitcoin and ether

Advisors and investors are being encouraged to look beyond bitcoin and ether as the cryptocurrency market diversifies into a wide array of networks and applications. While bitcoin is positioned largely as a store-of-value and ether underpins smart contract platforms, thousands of other tokens now target use cases including faster settlement, decentralized finance, interoperability and data infrastructure. TradingView estimated total crypto market capitalization at roughly $2.5 trillion at the time of writing, underscoring the size of the broader market beyond its two largest assets.

Concentration in bitcoin and ether is a growing consideration for portfolio construction. Periods in which bitcoin drives market performance can shift to broader participation across other cryptocurrencies in different cycles, meaning portfolios focused on the top two tokens could miss gains or exposure if investor interest disperses. To address this, ProShares highlights multi-asset indices such as the CoinDesk 20 Index, which aims to provide diversified exposure to 20 of the largest and most liquid cryptocurrencies while excluding memecoins, stablecoins and certain other assets.

The CoinDesk 20 Index applies a modified market-cap weighting designed to limit concentration: a 30% cap on the largest constituent and 20% caps on all other constituents. The index reconstitutes quarterly to reflect market changes. ProShares notes that, without such caps, a market-cap-weighted approach would be dominated by bitcoin and ether; the caps are intended to allow a wider set of major cryptocurrencies to contribute to index performance. ProShares also presented a hypothetical calculation using index constituents weighted by market capitalization without the caps as of June 30, 2026, for illustrative purposes.

Beyond diversification benefits, index-based products can simplify the practical and operational challenges of owning many individual tokens. Building similar exposure directly would require purchasing, securing and periodically rebalancing multiple crypto assets, each potentially involving different custody and operational arrangements. The regulatory landscape is also evolving, and greater clarity from policymakers may influence how additional parts of the crypto ecosystem integrate with traditional financial markets.

ProShares emphasizes that looking beyond bitcoin and ether does not mean abandoning them: the CoinDesk 20 Index still holds significant positions in both assets while offering broader market exposure. Institutional interest is growing, and products such as indices, exchange-traded funds and separately managed accounts are presented as ways to access diversified crypto exposure as the asset class matures.