When breaking free from dependence on Bitcoin… Keiko Research proposes an investment portfolio solution through the "KT10 Index"

Cryptocurrency data analysis firm Kaiko Research recently pointed out in a report that as the maturity of the cryptocurrency market increases and the need for diversified portfolio strategies becomes more apparent, Bitcoin-centric investment strategies have limitations, and the KT10 index may offer an alternative solution.

Although Bitcoin (BTC) has long served as the de facto benchmark in the crypto market, in recent years, major assets such as Ethereum (ETH), Solana (SOL), and Ripple (XRP) have demonstrated increasingly independent price movements and growing liquidity, which may increase investors’ risk exposure under single-asset dominated strategies. Against this backdrop, the KT10 index released by Kaiko Research, which meets institutional investors’ requirements for liquidity and quality and offers a transparent, systematic strategy beyond Bitcoin and Ethereum, is becoming a meaningful alternative.

The KT10 index is built on the Kaiko Indices platform, employing a dual-weighting method that combines circulating market capitalization and liquidity. This model aims to improve the practical investability of crypto assets, considering not only market cap but also factors reflecting actual buy execution capability and slippage risk, thus providing a more realistic reflection of market conditions.

For example, Dogecoin (DOGE) maintains strong liquidity and high trading depth, meeting certain institutional investment standards. This well exemplifies Kaiko Research’s index design concept of balancing investability and representativeness.

The KT10 index features Bitcoin and Ethereum each accounting for approximately 29% of the weight, serving as core axes, while Solana and Ripple are included with weights of 14% and 15%, respectively. This composition reflects the rapid asset rotation characteristic of the crypto market, avoiding over-reliance on a single asset and providing strategic flexibility. Especially during the summer and fall of 2025, when SOL and XRP showed dominant upward trends while BTC was sideways or declining, these two assets played a decisive role in the index’s performance.

In terms of performance management, positive changes have also been observed. By the end of 2025, the KT10 index recorded a long-term return of over 1100%, surpassing the global major stock index S&P 500. Although there were brief periods of negative returns amid the highly volatile market environment of 2025, Kaiko Research emphasizes that the structural advantages of the index composition are more important than short-term performance.

Particularly noteworthy is the recovery of the Sharpe ratio, indicating that the KT10 index not only shows improvements in absolute return but also in risk-adjusted returns after volatility adjustments. Since early 2026, the rolling Sharpe ratio of KT10 has turned positive, suggesting that, amid uncertainty, the index’s structural stability is restoring its investment appeal.

In the context of increasing numbers of investors seeking to avoid the inherent risks of Bitcoin-centric strategies while effectively participating in the growth potential of cryptocurrencies, KT10 is playing a role in setting diversification strategy standards. This provides valuable insights for investors looking to move away from traditional Bitcoin-focused thinking and seeking to optimize risk diversification and sector rotation.

Kaiko conducts quarterly rebalancing of the index and sets a maximum weight limit of 30% for individual assets to preempt excessive concentration risk. This design helps institutional investors ensure strategy reproducibility and operational efficiency, while also supporting the feasibility of actual buy and sell strategies in the market.

Ultimately, KT10 offers a compelling approach for investors who recognize the need to diversify their cryptocurrency portfolios beyond single assets. As the crypto market evolves toward greater maturity and sophistication, KT10 is becoming a tool for investors to maximize opportunities under controlled risks.