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January 26, 2021
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Bitcoin

Bitcoin is less volatile than the S&P 500 share

On Friday, Van Eck released a new study indicating that Bitcoin’s price is less volatile than many stocks traded on the S&P 500.

In one of entries On a blog, a German stock exchange product issuer said that while Bitcoin has long been considered a “nascent and volatile asset outside of stock markets and capital markets,” in fact, its volatility is comparable to that of the largest companies in the world.

Since the beginning of the year, 29% of S&P 500 shares have experienced greater price fluctuations than in digital currency. As many as 22% of companies showed greater volatility in the last 90 days.

Bitcoin vs Gold

This research is particularly interesting because Van Eck’s flagship offer largely concerns an asset class that has long been considered competitive to Bitcoin, i.e. gold.

Of the nearly $ 50 billion assets under management by Van Eck, most are gold-related. The company founded the first gold equity fund in 1968 (INIVX), and in 2006 the now very popular gold mine ETF (GDX) was established.

Despite focusing on the gold, Van Eck was never ashamed of researching Bitcoin-based solutions. Currently, the company offers institutional investors a bitcoin stock exchange product, and earlier it also applied to the SEC for the possibility of creating a bitcoin ETF.

The company recently released another report claiming institutional investors should consider introducing Bitcoin into their portfolio.

Institutional investors

Given the regulatory hurdles that Van Eck encountered during its recent venture, this study may have been intended to alleviate SEC concerns. Institutional investors have so far shown a remarkable appetite for Bitcoin and other cryptocurrencies.

Recently, companies such as MicroStrategy, Square Jack Dorsey and Stone Ridge have entered the world of digital assets. All of them have made huge investments in the oldest cryptocurrency.

In addition, huge platforms such as PayPal or AirBnb are interested in digital assets. Recently, the payment giant launched crypto services for US citizens. Airbnb, on the other hand, is slowly becoming convinced of cryptocurrencies, despite its previous negative position.

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