Bitwise's '10-Crypto' Fund Became a Bitcoin Fund in Disguise — Here's What Went Wrong

WHY IT MATTERS

Imagine you invested in a basket of 10 different fruits at a farmers' market, hoping that spreading your money around would protect you if one fruit's price dropped. But what actually happened is that apples (Bitcoin) kept getting more expensive while the other nine fruits lost most of their value. By the end, your 'diversified' basket was almost entirely apples — and you lost money on everything else. This matters because it shows that in crypto, 'diversification' doesn't always work the way it does in traditional investing. Bitcoin is so dominant that holding a mix of cryptocurrencies can actually increase your risk rather than reduce it, especially when smaller coins decline sharply.