- Bitcoin has consistently been called “volatile”.
- But investment management firm VanEck compared the currency to S&P 500 stocks.
- The company’s research found that Bitcoin was less volatile than 112 companies in the index.
Bitcoin is less volatile than many stocks, says investment management company VanEck.
The company compared the cryptocurrency to S&P 500 companies and found that Bitcoin was less volatile than 112 of them over a 90-day period. Over the past year, Bitcoin has been a better bet than 145 stocks in the index.
Bitcoin was blown up by some in the traditional financial world because of its volatility. But VanEck said the story is not as straightforward as it was previously believed.
“While bitcoin continues to be a volatile asset, it may surprise researchers and investors what other major assets have been more volatile than bitcoin,” the company said in a blog post on Friday.
“Much of the volatility over the past few years can be attributed to sensitivity to the small total market size, regulatory hurdles, and generally limited penetration in traditional stock and financial markets.”
The company added that an American Bitcoin exchange-traded fund (an investment vehicle that tracks the value of the currency) does not yet exist, but when it does, it “may exhibit similar volatility characteristics as many stocks in well-known indices and ETFs. . VanEck withdrew its own Bitcoin ETF request.
This isn’t the first time that Bitcoin has proven to be a better investment than traditional stocks. An investor put in $ 1000 in the top 10 cryptocurrencies in January 2019 on an experimental basis, and digital assets – including Bitcoin, Ethereum, and Bitcoin Cash – came out the winners.