The crypto industry has seen positive developments following the U.S. presidential election, including the nomination of crypto-friendly individuals to regulatory positions. This has led to bitcoin reaching $100K and the expectation of continued outperformance for non-BTC crypto assets in 2025. However, the categorization of the crypto economy into simply bitcoin and "altcoins" is no longer accurate, as there has been an explosion of innovation and sector-specific applications in the industry. Digital assets should now be treated as a diverse multi-sector asset class. Comparisons between the market caps and sector diversification of prominent crypto assets and constituents of the S&P500 Index show similarities and highlight the potential for further expansion of the crypto asset class. It is important to construct diversified digital asset portfolios that encompass all crypto sectors and use cases to mitigate risks and fully benefit from the asset class. Taking a binary approach of bitcoin versus altcoins may limit the portfolio's exposure to the full value proposition of the crypto industry. Embracing the broader crypto economy as an asset class means allocating to digital assets with long-term strategies. Focusing solely on bitcoin may cause investors to miss out on the potential benefits of comprehensive investment within the asset class.



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