Why Traditional Investors Should Embrace Digital Assets Now

Digital assets have grown to a $4 trillion market, offering portfolio diversification and better risk-return. Dovile Silenskey of WisdomTree explains why small allocations to crypto, with disciplined analysis, benefit investors’ portfolios.

September 19, 2025

Digital Assets: Mature and Worth Attention

At the recent DNB Digital Asset Summit, Kaupr conducted a video interview with Dovile Silenskey, who highlighted that digital assets are no longer niche and deserve serious consideration from traditional investors seeking portfolio growth. You can also watch the video interview below.

Data Over Emotion

Silenskey urged investors to focus on analytics rather than political opinions or media hype surrounding cryptocurrencies. Digital assets represent about 1.7% of the total investable market cap, and ignoring them is a conscious decision requiring thorough analysis. Bitcoin’s significant volatility coupled with low correlation to traditional assets enhances portfolio diversification.

Small Allocation, Significant Benefit

One of Silenskey’s key points is that even a modest allocation to Bitcoin can enhance the risk-return profile of a multi-asset portfolio. She referred to Bitcoin’s 15-year track record, which demonstrates its value as a functioning asset worthy of inclusion.

Recommended Allocation Approach

For most investors targeting market-cap neutrality, Silenskey suggests exploring a 2% allocation to digital assets. She notes that individual circumstances vary, and some may find a higher or lower allocation appropriate after detailed portfolio analysis.

Bitcoin and Ethereum: Core Digital Assets

Bitcoin is known as “digital gold,” serving as a store of value with longstanding credibility. Ethereum, the second largest by market cap, is an institutional blockchain platform facilitating asset tokenization and stablecoin issuance. Silenskey stresses disciplined rebalancing and avoiding panic trading to maintain investment targets.

Benefits of Crypto ETPs

Direct cryptocurrency investment involves challenges such as private key management and security risks. WisdomTree’s crypto ETPs, fully backed by physical crypto assets held securely by custodians, present a safer, more accessible alternative that integrates seamlessly within traditional portfolio structures.

Nordic Market Nuances

In the Nordics, direct crypto investments have historically dominated—particularly in Norway where only about 5% use ETPs. Across other European markets, investors who started with crypto ETPs tend to remain within that investment wrapper due to ease of integration with institutional systems.

Balancing Investment Preferences

Silenskey recognizes that investor preferences differ: some prioritize direct crypto access with 24/7 trading flexibility, while others prefer ETPs trading during exchange hours. She advises disciplined portfolio rebalancing during market hours and cautions against panic buying or selling.

This video interview was conducted in Oslo during the DNB Digital Asset Summit on September 19, 2025.