Allowed digital currencies suggested by money managers for constructing a resilient financial portfolio
In the ever-evolving world of cryptocurrencies, wealth managers are increasingly recommending a defensive approach to investment, prioritising stability, resilience, and liquidity. Three cryptocurrencies that stand out in this regard are Bitcoin (BTC), Ethereum (ETH), and Chainlink (LINK).
Bitcoin, often referred to as "digital gold", acts as the foundation of crypto portfolios due to its core stability, deep market liquidity, and broad institutional acceptance. Its long-standing recognition as a digital reserve asset makes it a defensive asset that can preserve value across market cycles. Ethereum, on the other hand, serves as a key infrastructure token supporting a vast ecosystem of smart contracts and decentralized applications. Post upgrades, Ethereum shows resilience and continued growth potential, balancing defensive traits with exposure to network expansion.
Chainlink, while less dominant than BTC and ETH, is valued for its specialized utility and resilience within the broader crypto ecosystem, supporting decentralized oracle functions that are critical to many smart-contract platforms. Its technology of decentralized oracles allows blockchains to interact with external data, maintaining constant demand for LINK.
In defensive portfolios, these cryptocurrencies are selected to demonstrate resilience against market downturns, low volatility, and a clear utility within the blockchain ecosystem. For instance, Bitcoin and Ethereum together constituted around 50% of asset managers' cryptocurrency holdings throughout various market conditions in 2025, underscoring their role as core, stable assets to anchor portfolios during both bullish and bearish cycles.
Chainlink, while less dominant, is valued for its specialized utility and resilience within the broader crypto ecosystem, supporting decentralized oracle functions that are critical to many smart-contract platforms. Its strategic alliance with Google Cloud strengthens its profile as a reliable tool within crypto infrastructure.
Grayscale, a fund, has included Ethereum in its products, validating its potential as a long-term asset. Adopting this approach does not eliminate the inherent volatility of the crypto ecosystem, but it mitigates it and frames it within a strategy where each asset has a clear role.
In conclusion, wealth managers favour Bitcoin and Ethereum as the cornerstones of defensive crypto investing because they offer stability, resilience, and liquidity. Chainlink complements these by providing exposure to emerging decentralized technologies, helping balance growth and defence in crypto portfolios. This combination aligns well with traditional defensive investing principles emphasising asset durability and liquidity, adapted to the unique crypto market dynamics.
Investing in Bitcoin and Ethereum, which are known for their stability, deep market liquidity, and broad institutional acceptance, provides a defensive approach to crypto financing by offering resilience and value preservation across market cycles. On the other hand, Chainlink, with its specialized utility and resilience within the crypto ecosystem, supports decentralized oracle functions and serves as an exposure to emerging decentralized technologies, thus balancing growth and defense in crypto portfolios.
