In 2024, institutional investors surged into the crypto market,
prompting regulatory discussions on Bitcoin and Ethereum classification. While the UK and EU classify them as alternative assets, in the US they fall under the responsibility of the commodities regulator. This research paper underscores the significance of classification and its attendant challenges. Specifically, We examine whether Bitcoin and Ethereum exhibit commodity-like behaviour in portfolios. Through forecasting (i), trading strategy tests (ii), diversification analysis (iii), and risk measurement (iv), including extreme price movement episodes, we find that the crypto currencies behave very distinctly than traditional commodities. Based on our results, We propose an alternative approach for institutional investors to commence crypto asset trading accounting for the possibility of extreme price movements.