Schwab Categorizes Crypto Assets by Risk Profile in New Strategy

The financial services company Charles Schwab has developed a crypto strategy that categorizes five digital assets into different portfolio roles. According to Adam Lynch, the firm's director of global equity research, Bitcoin and Ethereum are considered core investments due to their status as debasement hedges.

Lynch referred to Bitcoin as the 'classic' debasement hedge, citing its use as a store of value in response to fears about fiat money's purchasing power. He also noted that Ethereum has a more functional role than Bitcoin but is still tied to the debasement theme.

Solana, XRP, and Hyperliquid are classified as higher-risk investments with increased volatility compared to the two major cryptocurrencies. Lynch stated that purchasing these assets will complement the allocation of funds in Bitcoin and Ethereum.