Van Eck said Bitcoin is less Volatile than Many Stocks in 2020
The latest research of Van Eck appears to be an attempt to assuage investor’s fears regarding the bitcoin and SEC.
Last week, Van Eck, an investment management firm, released new research suggesting that bitcoin’s price movements are less volatile than between a quarter and a third portion of the stocks listed on the S&P 500.
In a subsequent blog post, the German exchange-traded products issuer considered Bitcoin a “new and volatile asset outside the traditional stock and capital markets.” Still, the surprising reality is that one of the world’s largest companies consider trading with volatility compared to the other largest companies selling in traditional stocks.
While seeing the year-over-year stats, over 29% of S&P 500 stocks experienced volatile price fluctuations compared to digital currency. In contrast, 22% did the same on a 90-day basis, Van Eck said.
Van Eck’s significant offerings are Bitcoin: This research is notable for being high in the property class considered a gold competitor.
While Van Eck’s current holding is nearly $50 billion in assets, the majority belong to gold funds. The company established the first gold stock fund (INIVX) in 1968, and the first – and now the most popular – gold miners in 2006 were ETF (GDX).
Despite their preference for bullion, Van Eck was never shied and backed off about exploring bitcoin. As of now, the company currently offers bitcoin exchange-traded products to institutional investors. It has previously sent applications to SEC to offer bitcoin ETFs.
The company recently released a report asking institutional investors to consider having bitcoin on their books and explore this option while they trade.
Although looking at the regulatory hurdles Van Eck faced in their last Bitcoin ETF venture, this latest research could be aimed at assessing SEC fears rather than investors, who to date have demonstrated an excellent appetite for BTC-backed securities.
Also Read: Rick Rieder Said Bitcoin May Replace Gold in Long Run
