Van Eck: „Bitcoin shows less volatility than many large stocks“
On Friday, asset management firm Van Eck published a new study which concludes that Bitcoin’s share price movements show less volatility than a quarter to a third of all companies in the important S&P 500 share index.
In the corresponding blog entry, Van Eck first notes that Bitcoin was long regarded as a „volatile asset outside the stock and capital markets“, but that this is now a thesis that no longer by Profit Revolution corresponds to reality, as the market-leading crypto currency shows a volatility comparable to that of some of the world’s largest companies.
For example, year-on-year, 29% of stocks in the S&P 500 show more volatility than the crypto currency, while over 90 days this is still true for 22% of all companies, Van Eck calculates.
The study results are all the more remarkable as Van Eck invests primarily in gold. The precious metal is actually considered a major competitor of Bitcoin, as the digital currency is challenging its position as the market-leading store of value.
Investment company itself founded
Of the USD 50 billion Van Eck manages, the majority is invested in gold based funds. In addition, the investment company itself founded the very first gold equity fund (INIVX) in 1968 and the very first gold miner ETF (GDX) in 2006, with the latter now enjoying particular popularity.
Despite its own attachment to the precious metal, Van Eck has so far not shied away from trying out Bitcoin. Accordingly, the asset management company offers a listed financial product (ETP) based on the crypto-currency, which is, however, only available to institutional investors. In addition, Van Eck has already applied several times to the US Securities and Exchange Commission (SEC) for a Bitcoin ETF.
Most recently, the investment firm published another study in which it advises institutional investors to invest in Bitcoin.
Given the headwinds Van Eck has faced in applying for Bitcoin ETFs, the current advocacy for the crypto-currency could be interpreted as being aimed more at appeasing the SEC than at convincing investors, as the latter are already interested in the crypto-currency anyway.