Crypto asset managers look past the next big coin to diversify portfolios

The next innovation in cryptocurrencies won't come from the introduction of a Solana ETF. Asset managers say they're more focused on other ways investors can diversify their portfolios with crypto.

The launch of the highly anticipated bitcoin ETFs in January was a success, but many are wondering what's next for the industry. Some crypto enthusiasts are speculating about which coin will next be put into an ETF wrapper (many are speculating it could be Solana), but asset managers at the Wyoming Blockchain Symposium in Jackson Hole say the search is about more than that alone.

"As we think about how to educate investors about this broader ecosystem, it's not individual token by token, but rather … how do we think about portfolio construction and from there, how do we create exposures representing different sectors within this growing ecosystem," said Cynthia Lo Bessette, head of digital asset management at Fidelity Investments. "There's an opportunity for us to be able to add value beyond just individual access to just some of the largest crypto tokens."

Steve Kurz, global head of asset management at Galaxy, pointed to his firm's recent partnership with custody giant State Street to develop active trading products.

"That is not about the next coin, it's about the 75 securities that are now linked to crypto – the fact that there are futures, options, crypto ETFs, all kinds of exchange traded vehicles globally," he said. "The accordion has expanded so much in just one year that you can start to have active strategies."

"While that's not what I think the average crypto asset manager would say the path would have been, that is a path that brings crypto awareness and crypto education through a different set of tools," he added.

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