Diversification within crypto hardly makes sense beyond maybe 90% bitcoin and up to 10% shitcoins, yet surely guys can do what they like, and even make dumb diversification decisions when it comes to bitcoin versus shitcoins.
Over the years, I have come across all kinds of scenarios in which guys are either ONLY allocated into shitcoins, or maybe they ONLY have 10% to 20% in bitcoin adn the rest of their value spread across various shitcoins.
I would call that the strategy of fools. If someone makes money with it, it is by chance, as if you put a lot of monkeys to pick shitcoins, at the end some of them will find a profitable portfolio, but not because they have done anything smart.
I understand various kinds of bitcoin derivative products might be the 2025 (or this cycle) distraction away from bitcoin, and guys can do what they like in regards to various bitcoin derivative products, whether investing into various MSTR products or some other company who might be wanting to pump their stock or to convert their company into a bitcoin holding company (in part or in total). I am not going to do it, and I am not going to criticize guys who might choose reasonable allocations to bitcoin derivative products rather than holding bitcoin itself.. yet if guys are getting into more than 30 or 40% of their bitcoin-related holdings into those kinds of bitcoin derivative products rather than bitcoin itself, then I surely would be questioning their judgement - even though surely if they are a business or a government or they might hold their value through various retirement (pension) type funds, then they might not even be able to easily hold bitcoin directly rather than having to get bitcoin price exposure through such bitcoin derivative products.
That's for sure. Having all or most of your investments in companies that hold bitcoin but not having bitcoin that you manage with your private keys doesn't make much sense to me either, unless you are an institutional investor like those in the examples you have given that for regulatory reasons cannot buy bitcoin directly.