Hybrid portfolio in Bit2MeHow to view it and how to rotate profits between crypto and funds

More and more users of Bit2Me They combine two financial worlds that until recently existed separately: cryptocurrencies on one hand, and investment funds, ETFs, or stocks on the other. Typically, each is managed on a different platform, without an overall view of the total portfolio or the percentage allocated to each asset type. And when the crypto market moves strongly, this lack of perspective ceases to be a minor detail and becomes a real problem when deciding whether to rebalance the portfolio.

In this article we explain how the hybrid portfolio works today within Bit2MeWe'll explain exactly what rotating crypto profits into funds means and what you should consider before taking that step, starting with the tax implications. We'll also look at which types of funds are right for you, how the entire process works, and why a partial rotation might make more sense than a complete exit from the crypto ecosystem.

The problem with having your assets spread across two places

If you own cryptocurrencies and also have investment funds or stocks, you most likely manage those assets on at least two different platforms: an exchange for the crypto portion and a bank or broker for the traditional portion. At first glance, it seems like a simple organizational detail, but in practice, it creates real and cumulative friction. The first consequence is that you can't see the total value of your assets in one place: if you have €5.000 in Bitcoin and €3.000 in funds, you need to open two different applications to see that, in total, you have €8.000.

The second consequence relates to paperwork. Every financial platform legally requires you to verify your identity through the KYC ("know your customer") process before allowing you to trade. If you use one exchange for crypto and a different broker for funds, it's very likely you've repeated this process more than once, uploading the same ID and proof of address to two different systems.

There is a third, more subtle, friction: the loss of perspective on what percentage of your total wealth is in each type of asset. Knowing you have "some crypto and some cash" isn't the same as knowing that 50% of your money is in crypto assets, especially when that percentage changes simply because the market has moved. And when it's time to rebalance your portfolio, you end up doing manual calculations with data from various platforms, each with its own statement format.

How does the hybrid portfolio work in Bit2Me?

Inside the app Bit2Me Today, two sections with different purposes and regulatory frameworks coexist, although they share a user account. Bit2Me Exchange This is where you manage your crypto assets: buying, selling, and, for assets that allow it, putting into staking to receive rewards. This part operates under the Regulations MiCA (Markets in Crypto-Assets), the specific European framework for crypto asset service providers, in force throughout the European Union since 2024.

Bit2Me Invest This is the section where you access investment funds, ETFs, and stocks. Here, Bit2Me acts as a tied agent of InbestMe, an entity supervised by the CNMV under MiFID II: The entity under the direct supervision of the CNMV as the main entity is InbestMe, and Bit2Me channel that relationship with the user. Before investing in this section, every user completes a suitability test required by MiFID II, designed to assess whether the type of product fits their profile and investment experience.

What does exist today is a single account of Bit2Me This gives you access to both sections without requiring additional registration: if you've already completed your identity verification for cryptocurrency trading, you can log into Invest with that same account, without repeating the KYC process or uploading your documents again. However, there's still no dashboard that automatically combines the value of your crypto wallet and your Invest wallet into a single total net worth figure: each section displays its own balance, and adding both numbers is still your responsibility. We prefer to be transparent about this rather than promise something the app doesn't yet offer.

Another important operational nuance for everything that follows: the first entry towards Bit2Me Invest is done via bank transfer, not directly from your crypto wallet balance. Currently, it's not possible to move your euro balance from the exchange to Invest without going through your bank account; this is something we'll be improving in future product phases. It's important to keep this in mind because it directly affects the profit rollover process, which we'll discuss next.

What does rotating benefits mean and why does it make sense?

Rotating profits is the process of selling, in whole or in part, a crypto position that has generated a profit and redirecting that liquidity towards an asset with a different risk profile: Money market funds, fixed-income funds, or index funds, depending on your objective. The underlying idea is simple: if your portfolio of Bitcoin, Ethereum, or other crypto assets has grown, you can "secure" some of that profit by transferring it to instruments less exposed to sharp price fluctuations.

This isn't a one-size-fits-all decision. It depends on your time horizon, your belief in the future performance of your crypto assets, and your specific financial goals. If you have a long-term horizon and a high risk tolerance, you might prefer to keep your entire crypto position intact; if your goals are closer in time, you might prefer to reduce that exposure.

Nor is it an all-or-nothing decision: the rotation can be partial, moving only a portion of the profits and leaving the rest exposed to the behavior of the crypto market. Bit2Me We support both paths because we have product on both sides of this decision, the Exchange where those benefits are generated and Bit2Me Invest, where they can become a different kind of investment.

However, rotating profits is not a risk-free strategy or a formula that guarantees better results: it is just another diversification option, and neither crypto assets nor investment funds are risk-free, although that risk has a different nature in each case.

The tax implications you can't ignore before rotating

Before considering which fund to choose, there's one step you can't skip: understanding the tax implications of selling cryptocurrencies in Spain. Selling cryptocurrencies is a taxable event for personal income tax (IRPF), meaning that the moment you sell and realize a profit, you generate a tax obligation, regardless of what you do with the money afterward. Unlike investment funds, where you can transfer your position from one fund to another without paying taxes until the final redemption, this deferral doesn't exist with cryptocurrencies: selling is always taxed in the tax year in which the sale occurs.

Capital gains from the sale of cryptocurrencies are included in the savings income tax base, which in Spain is applied in brackets: 19% up to €6.000, 21% between €6.000 and €50.000, 23% between €50.000 and €200.000, 27% between €200.000 and €300.000, and 28% above €300.000. These brackets correspond to the regulations in force at the time of publication of this article and may be updated, so it is advisable to confirm them with an official source before making any final calculations.

Let's see how this combines with a real hybrid portfolio. Marta, a user of Bit2MeShe allocates her assets as follows: 40% in cryptocurrencies (a diversified mix of Bitcoin and Ethereum), 35% in global equity index funds, 15% in short-term fixed-income funds, and 10% in a money market fund that serves as a liquidity buffer. After a significant rise in the crypto market, the weight of her crypto holdings increases from 40% to 50%, and Marta decides to rebalance by selling part of her position to return to her target allocation.

This sale generates a net capital gain of €10.000 (the difference between the sale price and the purchase price, minus commissions). It would be taxed approximately as follows: the first €6.000 at 19% (€1.140) and the remaining €4.000 at 21% (€840), totaling approximately €1.980 in estimated tax. This leaves you with approximately €8.020 in net liquidity, not the full €10.000, to allocate to funds and restore the original weight of your portfolio. This calculation is only a simplified example and does not consider other tax circumstances that may apply to your specific situation.

Which funds fit your goal after the rotation?

Once you've calculated your actual available cash, the next question is what type of fund to allocate it to. The answer depends on your objective after selling your crypto assets, and here it's best to think in terms of categories, not specific products from a particular asset manager.

If your priority is preserving capital with some return while you decide on your long-term strategy, money market funds are the most conservative option: they are low-risk funds with returns that typically hover around the ECB's official interest rates, and they are well-suited for temporarily storing cash. If you're looking to reduce the volatility of your portfolio without completely sacrificing some growth, mixed funds or medium-term fixed-income funds offer a middle ground between stability and appreciation potential.

There is a third option for those who don't want to completely forgo exposure to equities but seek greater diversification than a portfolio concentrated in just a few crypto assets offers: global index funds, which track indices like the MSCI World or the S&P 500. These funds spread risk across hundreds or thousands of companies in different sectors and regions, reducing dependence on the performance of a single asset. Their historical volatility is typically lower than that of crypto assets, although they are still equities and therefore subject to market risk.

The choice between these options depends on your risk profile and how long you want to keep that capital out of cryptocurrencies. No category is inherently better than another: they are different tools for different purposes, and past performance is no guarantee of future results. If you want to learn more, in Bit2Me Academy We have an article dedicated to how index funds work and another specific one about money market funds as a conservative option.

The step-by-step process for rotating benefits in Bit2Me

With the tax calculation done and a clear idea of ​​what type of fund you want to allocate your liquidity to, this is how the rotation is executed from Bit2MeRemember that, as we saw earlier, the financing of Bit2Me Invest is done via bank transfer, so it's best to plan ahead to avoid last-minute surprises.

1. Sell ​​your crypto assets at Bit2Me Exchange. The resulting amount in euros will be available in your balance. Bit2Me.
2. Calculate the net capital gain (selling price less purchase price and fees) and estimate the tax impact, as we saw in the previous section, before deciding how much you will allocate to funds.
3. Withdraw that balance to your bank account. The crypto balance converted to euros is not yet automatically transferred to Invest.
4. Accede to Bit2Me Invest directly through the app and transfer funds from your bank account. If this is your first time, complete the MiFID II suitability test and sign the onboarding documents with the asset manager.
5. Select the fund according to your risk profile and make the contribution with the available liquidity.

Bit2Me Invest is integrated into the same app you already use for your crypto assets, so you don't need to download anything new or register on another platform. However, it's important to keep in mind that the process of selling crypto and investing in funds currently involves a manual bank transfer, and planning ahead will prevent last-minute hassles.

Partial rotation: the hybrid portfolio as the final destination

Rotating profits doesn't necessarily mean choosing between crypto or mutual funds. Many users opt for partial rotation: moving only a portion of their profits into mutual funds and keeping the rest in crypto assets, as in Marta's rebalancing example we just saw. This strategy allows you to remain exposed to the movements of the crypto ecosystem while reducing the overall volatility of your portfolio by allocating a portion to regulated assets with a different risk profile.

There is no single "correct" ratio of partial rotation. It depends on your risk profile, your time horizon, and how confident you are in your crypto assets for the future. A hybrid portfolio, with a portion in crypto and another in funds, makes sense for those who want to participate in the sector's growth without concentrating all their wealth in a single, highly volatile asset class. If you want to better understand how to combine crypto assets with traditional assets within a diversification strategy, see [link to relevant section]. Bit2Me Academy We have specific articles on crypto portfolio diversification and on comparative risk between crypto volatility and investment funds.

As with any regulated financial product, neither the profitability of a fund nor that of the crypto ecosystem itself is guaranteed. Bit2Me Today, it's one of the few platforms in Spain that allows you to manage cryptocurrencies and regulated financial assets from the same app and account—something that until recently was only available through exchanges and traditional banks. If you've already calculated your tax impact and know what percentage of your profits you want to reinvest, diversify your portfolio with funds from Bit2Me Invest and build a portfolio that fits your own risk profile, not someone else's.

Rotating profits isn't about giving up on your crypto assets; it's about managing them wisely. Moving a portion of your gains into less volatile funds is a wealth management decision, not abandoning that asset class. The real sticking point, as we've seen, is tax-related and operational: it's resolved by calculating your net profit before selling, taking into account the transaction through your bank account, and consulting a professional if your situation warrants it.

If you're considering taking this step, the order matters: first, review how your assets are currently allocated between Exchange and Invest, then calculate the tax impact of your planned sale, and finally, choose the type of fund that best suits your time horizon. Once you have these three elements clear, the next step is just a couple of taps away within the same app. Bit2Me.

Frequently Asked Questions about Hybrid Portfolios and Earnings Rotation Bit2Me