Van Eck’s latest research seems to be an effort to calm investors‘ fears about Bitcoin… as well as those of the SEC.
Van Eck says Bitcoin is ‚less volatile than many‘ stocks
On Friday, investment management company Van Eck has divulged a new research indicating that Bitcoin price movements are less volatile than between a quarter and a third of the stocks listed on the S&P 500.
In a blog post, the German issuer of publicly traded products said that although Bitcoin has long been considered a „nascent and volatile asset outside the traditional stock and capital markets“, the reality shows that the world’s largest cryptomeda trades with volatility comparable to some of the world’s largest companies.
In the year-to-date figure, 29% of the S&P 500 stocks experienced more volatile price fluctuations than the digital currency, while 22% did the same in 90 days, Van Eck said.
The survey is remarkable, given that Van Eck’s flagship offerings are widely expressed in one asset class long considered a Bitcoin competitor: gold.
Of the nearly $50 billion in assets under Van Eck management, most are related to gold funds, and the company founded the first gold stock fund in 1968 (INIVX) and the first – now extremely popular – ETF gold miners in 2006 (GDX).
Despite its emphasis on gold, Van Eck has never been ashamed to exploit Bitcoin, however. The company currently offers a publicly traded Bitcoin product to institutional investors and has already sent requests to the SEC to offer a Bitcoin ETF.
The company also recently released a report arguing that institutional investors should consider having Bitcoin in their portfolios.
Perhaps, given the regulatory obstacles Van Eck has encountered during its last ETF Bitcoin venture, this latest research may be aimed at calming the fears of the SEC more than those of investors, who have so far shown a remarkable appetite for BTC-backed securities.