Last Friday, investment management company Van Eck released new research showing that Bitcoin’s price volatility is less than one-quarter to one-third of the stocks in the S&P 500 index.
The issuer of German exchange-traded products said in a blog post that although Bitcoin has long been considered an “emerging unstable asset outside of traditional stocks and capital markets,” reality shows that the world’s largest cryptocurrency (Bitcoin) trading volatility is comparable to the stocks of some of the largest companies in the world.
Van Eck said that so far this year, 29% of the S&P 500 component stocks are more volatile than Bitcoin, and 22% of the S&P 500 component stocks are also more volatile than Bitcoin within 90 days.
This research is worth noting because Van Eck’s flagship product is focused on an asset class that has long been regarded as a rival to Bitcoin: gold.
Most of Van Eck’s nearly $50 billion in assets under management are related to gold funds. The company created the first gold equity fund (INIVX) in 1968, and in 2006 the now popular first Only gold miners exchange-traded funds (GDX).
Although they value gold, Van Eck has never shy away from exploring Bitcoin. The company currently provides Bitcoin exchange-traded products to institutional investors, and previously applied to the US Securities and Exchange Commission for the provision of Bitcoin exchange-traded funds (ETF).
The company also recently released a report advocating that institutional investors should consider investing in Bitcoin.
Perhaps, considering the regulatory obstacles Van Eck encountered in the last Bitcoin ETF investment, the purpose of this latest study may be more to alleviate the concerns of the SEC rather than the concerns of investors. So far, investors have compared Special currency-backed securities have shown extraordinary interest.
