Common market forces remain powerful, the authors noted, even as sectors become less correlated.

Over three years, bitcoin explained about half the differences in how much sector returns rose or fell in the firm’s analysis of crypto investment risk. The comparison used the FTSE Grayscale Crypto Sectors, indexes grouping digital assets by function and use case. Among the 10 largest non-stablecoin assets, six different cryptocurrencies led quarterly performance over two years; bitcoin topped none of those quarters. The performance comparison used data through Nov. 4.

Business Models Give Asset Selection More Weight

Grayscale’s earnings-based approach to token valuations examines fees generated by trading, lending, and other…