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On Friday, investment management firm Van Eck released new research indicating that Bitcoin’s price movements are less volatile than between a quarter and a third of shares listed in the S&P 500.
In a blog post, the German broadcaster of exchange-traded products said that while Bitcoin has long been considered a “nascent and volatile asset outside the traditional equity and capital markets,” the reality shows that the largest cryptocurrency of the world trades with volatility comparable to that of some of the largest companies in the world.
On an annual basis, 29% of the S&P 500 shares experienced more volatile price fluctuations than the digital currency, while 22% did the same on a 90-day basis, Van Eck said.
The research is remarkable, given that Van Eck’s flagship offerings are largely expressed in an asset class long considered a competitor to Bitcoin: gold.
Of the nearly $ 50 billion in assets managed by Van Eck, most are tied to gold funds, and the company founded both the first gold equity fund in 1968 (INIVX), and the first – now very popular – 2006 Gold Miners ETF (GDX).
Despite their emphasis on bullion, Van Eck has never been shy about exploring Bitcoin, however. The company currently offers an exchange-traded Bitcoin product to institutional investors and has previously submitted requests to the SEC to offer a Bitcoin ETF.
The company also recently released a report stating that institutional investors should consider having Bitcoin in their books.
Perhaps, given the regulatory hurdles Van Eck encountered during their latest Bitcoin ETF venture, this latest research could be aimed more at alleviating the SEC’s fears than those of investors, who to date have shown a considerable appetite for BTC-backed securities.
