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T. Rowe Price urges deliberate, diversified crypto exposure
The firm says most inflows have gone to single token bitcoin and newer ethereum products, while its view is that diversified, active management can better capture a fast moving crypto ecosystem.
A new research report from T. Rowe Price argues the debate over whether crypto belongs in mainstream investing has shifted from the question of eligibility to how investors should size and build exposure. The firm says it favors deliberate diversification rather than chasing individual tokens.
According to the report, most investor interest and inflows have moved into single token products tied to bitcoin and, more recently, ethereum. T. Rowe Price says that focus can miss a broader ecosystem of competing networks that it describes as technology platform like, spanning payments, decentralized finance, tokenization, and computing infrastructure.
The report also says bitcoin increasingly behaves like a macro asset than a technology platform, citing its fixed supply, decentralized governance, and longer track record, which has led to more frequent comparisons with gold, though it notes the analogy is imperfect. It adds that as the category has broadened, bitcoin’s share of total crypto market value has declined.
T. Rowe Price points to diversified active management as a more complete framework for advisors building an allocation, and highlights its T. Rowe Price Active Crypto ETF, TKNZ, as an example of that approach. The firm’s research further concludes that when adding crypto to a traditional portfolio, position sizing matters more than timing, with small allocations intended to influence overall portfolio risk.
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