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

Crypto’s culture of “HODL” (holding on for dear life) may change with the growing adoption of ETFs. Traditional investors who regularly rebalance their portfolios may dilute the practice of HODLing. As cryptocurrencies become more institutionalized, the launch of Bitcoin-tracking ETFs is expected to attract more interest. Some experts suggest that diversifying portfolios by adding Bitcoin exposure and regularly rebalancing could yield significant wealth gains. Rebalancing could help mitigate Bitcoin’s volatility and increase risk-adjusted returns. As institutional capital flows into the market, the potential for volatility dampening increases as more firms engage in account rebalancing.