Many investors in the market are always on the hunt for the best deal possible. There is so much buzz on the volatility of Bitcoin, but at the same time, it has been perceived to be a safe haven asset. Is it really better?
If you are debating about Bitcoin vs. stocks’ volatility, we have some good news for you. Research done by Van Eck indicates that Bitcoin might actually be better comparatively.
Van Eck, an investment management firm, released a research report on Friday that suggests Bitcoin price movement is much better in terms of volatility between a quarter and a third of all the stocks listed on the S&P 500.
Even though Bitcoin has most of the time compared to stocks and capital markets, the firm confirms that Bitcoins trades with so much volatility that can be compared to the largest companies in the world.
When Van Eck did a year-to-date basis, Bitcoin experienced 29% less volatility than the S&P 500 stocks, while on a 90-day basis, it experienced 22% less volatility.
Van Eck issues exchange-traded products with their flagship dwelling on gold; an asset class likened to Bitcoin. Most of the almost $50 billion assets under their management are likened to gold funds. The company has a history of starting the first every gold stock fund in 1968 (INIVX) and the famous gold miner’s ETF(GDX) back in 2006.
As much as Van Eck is big on the bullion, it is still open to exploring Bitcoin because of its potential. In support of that, the company plans to introduce a Bitcoin exchange-traded product though it is only open to institutional investors. So far, it has sent applications to the SEC and is awaiting approval.
Van Eck has done a report convincing institutional investors to consider adding bitcoin to their portfolio.
This is not the first time Van Eck is doing a Bitcoin ETF venture, the last time it tried; it faced regulatory hurdles from SEC. The company hopes that it will be easier to convince the SEC by buffing their fears with the research. From the situation, it turns out that SEC is more afraid than investors who are looking forward to embracing Bitcoin. Increasing number of people are showing a keen interest in BTC-backed securities.
From the market trend, the future is bright for Bitcoin-related ventures.
Photo by Austin Distel on Unsplash
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