Because of its volatility, Bitcoin name has been destroyed by some asset managers in traditional finance.
But on the other hand, VanEck said that the story is not as simple as it was previously assumed. Indeed, the well-known asset manager recently indicated that the number one cryptocurrency at present is less volatile than many other shares on the S&P 500.
The company compared the cryptocurrency to the S&P 500 and found that Bitcoin was less volatile than 115 shares in 100 days analysis. In the past year, Bitcoin was even a better less volatile than 151 shares in the index. The organization said the following in a blog post that was shared Friday:
“Although Bitcoin remains volatile, it may surprise researchers and investors as to which other important assets are more volatile than Bitcoin.”
The company continued explaining why the King’s currency is known for its volatility:
“A large part of the volatility of recent years can be attributed to sensitivity due to a small overall market size, regulatory constraints, and generally limited penetration into regular equity and capital markets.”
The company added that an American Bitcoin ETF which is an investment product following the currency’s value does not yet exist. Still, if it does, it may have similar volatility characteristics as many shares in well-known indices and ETFs.