Jan Van Eck, the CEO of VanEck associates said on CNBC on the 26th of January that there has been an influx of Bitcoin Investors to Gold market.
Bitcoin Investors Interest In Gold
As reported by CNBC, the CEO of VanEck, Jan Van Eck stated that he thinks Bitcoin pulled a bit of demand away from Gold in the year 2017. This could have been responsible for the Bitcoin bubble that took place in 2017, which accelerated the value to reach its apogee of almost $20,000 in that year.
Van Eck went further to say the firm just pulled a total number of 4,000 Bitcoin investors, interested in Gold in 2019. On this, he noted that in 2017, Gold lost to Bitcoin and at the moment it is shifting the other way round.
The subject of Bitcoin ETF has been a debate in recent time in the crypto market. In the same report, CNBC’s Tim Seymour, founder and chief investment officer of Seymour Asset Management while speaking on the subject said Bitcoin’s function as a store of value is questionable.
He further stressed the fact that unlike gold, Bitcoin being a store of value is highly questionable and has lost its liquidity. Nevertheless, he says Gold’s position being a store of value is unquestionable and indisputable.
The Growth and Development Of Gold ETF
While Bitcoin ETF remains a subject of debate, Gold ETF has seen tremendous growth in recent time. This is explicit in the record of Van Eck creation of GDX Gold Miners ETF and the GDXJ Junior Gold Miners ETF.
Van Eck noted that the assets had seen tremendous growth over the last two or three months. On the growth, he stated that they have been reacting opposite of the stock market. He noted that most times when the S&P was down, GDX was up, and decoupling makes him excited about gold shares as a diversifier. Also, a CNBC report justified this that the GDX ETF grew by 14 per cent in the fourth quarter of 2018 is its best performance since Q2 2016.
Meanwhile, recently Bitcoin ETF received a blow as Chicago Board Options Exchange’s (CBOE) BZX Equity Exchange has withdrawn its proposal of Bitcoin ETF. Also, there are predictions that the SEC will not approve Bitcoin ETF until 2020.