New Research: Bitcoin Is Less Volatile Than Many Stocks

The new study shows the volatility of Bitcoin has remained lower than most of the big companies and firms out there in the traditional financial space.

Based on the new research of the investment firm Van Eck, the trading pattern of the world’s leading digital asset shows it behaved less volatile than most of the stock companies included in the S&P 500.

The latest study by the researchers of the Van Eck rejects the idea that digital currency is more volatile than traditional assets. In Van Eck’s blog post, the research analysts wrote that the flagship cryptocurrency is known as a “nascent and volatile asset outside of the traditional stock and capital markets.” But the situation is totally opposite as the data tells that the price movement of Bitcoin is considered less volatile than the movements of some assets in the traditional world.

Less Volatile than S&P’s Stocks

According to Van Eck’s research blog post, about 29% of S&P 500 stocks have expressed more price fluctuations than Bitcoin while 22% of the stocks behaved similarly to the primary cryptocurrency. The findings came on the screen after the researchers observed price behavior over a time period of three months.

The firm, which is an expert in introducing exchange-traded products, has published data in favor of Bitcoin but it manages and controls only gold. According to estimation, Van Eck has assets under management worth $50 billion, and most of the assets revolved around gold. In 1968, the firm established the first-ever gold stock fund known as INIVX, and in 2006, it launched a gold miners ETF known as GDX.

Van Eck made several attempts to roll out Bitcoin ETF and filed applications with the US Securities and Exchange Commission (SEC).

In another report, it has also encouraged traders and investors to add the top digital asset in their portfolios.

In the Bitcoin ETF venture, it has faced many difficulties as SEC is not ready to declare it security. Many other crypto-related firms tried to issue Bitcoin ETF but failed in it.

Leave a Reply

Your email address will not be published.