Major Gold Investor VanEck Starts Investing in Bitcoin
One of the giants in the gold investments and asset management firms, VanEck has decided to enter the world of Bitcoin.
In fact, the company has filed an official VanEck Vectors Bitcoin Strategy exchange traded funds (ETF) with the U.S. Securities and Exchange Commission (SEC).
The VanEck firm is no doubt one of the biggest names in terms of investing gold in the U.S. Since 1955, the firm has been expanding and giving services to many parts of the world including Germany and Australia.
They currently have an estimated $38 billion assets which are not just gold but also silver and platinum.
With gold as their main investment tool, VanEck is also providing more than 50 different ETF. They offer these to companies and organizations that need pension funds and endowments.
Compared to the $7 trillion market capitalization of gold, the $71 billion market capitalization is way smaller. Despite the numbers, the company believes in the potential of the cryptocurrency for their future.
On the other hand, the global financial services firm, Morgan Stanley stated their view in recent news, saying that Bitcoin cannot match gold as an inflation hedge. In other words, gold is still a better investment.
Morgan Stanley analyst, Tom Price, explains:
“But if Bitcoin is successful long term, we should continue to see competitor cryptocurrencies and market strategies emerge to exploit the new economic rent — a Bearish risk for Bitcoin’s price.”
As a matter of fact, the day before the filing of the ETF, VanEck posted a blog, stating that the firm does not believe gold can be replaced by any digital currencies. But the firm, later on, admits that Bitcoin is an “investable asset class in their own right.”
Thus, the filing of VanEck Vectors Bitcoin Strategy ETF. The ETF is expected for the investment in Bitcoin futures contracts that would be available for trading on the Nasdaq.