Sometimes it’s confined, sometimes it explodes: it all depends on the mood of the bulls? Bitcoin (BTC) has rallied more than 70% since October 2020. Bitcoin would not be more volatile than traditional assets, however. Van Eck publishes a flattering report on Bitcoin that is not aimed at institutional investors.
Bitcoin looks like the S & P500
The investment company Van Eck publishes an article stating that Bitcoin is less volatile than most stocks listed on the S & P500.
The German company said that despite its reputation as a volatile asset, Bitcoin trades with volatility comparable to that of the world’s largest corporate stocks.
On an annual basis, 29% of the shares of the S & P500 recorded price fluctuations greater than Bitcoin ; over a 90-day period, 22% of these assets experienced greater variations.
Bitcoin is not dangerous: a quick note for the SEC
This study is all the more unique given that the flagship products of Van Eck are developed around one of the competitors of Bitcoin : gold.
Gold funds represent the majority of assets managed by the investment company: it had created the first gold fund, INIVX, in 1968 and the first Exchange Traded-fund (AND F) for gold in 2006.
Despite his preference for gold, Van Eck do not reject Bitcoin : the company offers a product Bitcoin tradable on the stock exchange for institutional investors and, has made several deposits with the DRY for a Bitcoin ETF.
Van Eck recently released a report in which the company stated that institutional investors should invest in Bitcoin.
Van Eck ran into many regulatory obstacles during its last project Bitcoin ETF : this study would aim to allay the fears of the DRY and not those of investors who show a great interest in the assets guaranteed by Bitcoin.
A BTC that outperforms traditional assets but which is ultimately not more volatile than the latter: Bitcoin would therefore be the exception that confirms the rule in terms of profitability – risk? Will BTC succeed in its bet of seducing institutional investors – not all but for the most part there will always be the dinosaurs like Warren Buffet or the BTC haters that will play a double game like Peter Schiff ? Will the SEC hear Van Eck’s arguments? A new Bitcoin ETF would shake the markets in a good way.
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