- “A crypto hippie”
- What VanEck dislikes about Bitcoin
During a recent appearance on Schwab Network, VanEck chief executive officer Jan van Eck has opined that investors should hold both Bitcoin and gold in order to be able to maintain a proper portfolio balance.
The prominent entrepreneur thinks that these assets are actually very similar since they have a limited supply.
“I think they’re very similar in terms of their role in people’s portfolios. It’s sort of a store of assets, and they both have limited supply.”
“A crypto hippie”
He has recalled that VanEck was actually the first ETF sponsor to file for a Bitcoin ETF in 2017, which is before it was popular, when it was a $3,000 token.
“So maybe I’m a crypto hippie. But I think yes, we suggest that people own both just to have that as a role in their portfolios because it helps during different market cycles,” he noted.
What VanEck dislikes about Bitcoin
At the same time, the VanEck boss says that he does not like the fact that Bitcoin is now highly correlated with the Nasdaq index. He argues that people do not want another risk asset in their portfolios.
“I would say the one negative thing I don’t like about Bitcoin, having followed it for a long time, is that it’s become very highly correlated with the NASDAQ and people don’t want, they don’t need just another risk-on asset in their portfolio just for the sake of having it,” he said.
Bitcoin used to be a “wonderful” diversifier, the VanEck boss notes. “I’m just kind of hoping things go through cycles, Diane. I’m just hoping the cycle changes a little bit and that correlation comes down,” he said.
