During a recent appearance on Schwab Network, VanEck CEO Jan Van Eck opined that investors should hold both Bitcoin and gold to maintain proper portfolio balance.
The famous entrepreneur believes that these assets are actually very similar because they are in limited supply.
“I think they’re very similar in terms of their role in people’s portfolios. It’s kind of a storehouse of assets, and both are in limited supply.”
“Crypto currency hippie”
He recalled that VanEck was actually the first ETF sponsor to apply for a Bitcoin ETF in 2017, before Bitcoin ETFs were even popular, when they were $3,000 tokens.
“So maybe I’m a crypto hippie, but I think so. I recommend owning both as part of your portfolio because they’re useful in different market cycles,” he said.
What VanEck hates about Bitcoin
At the same time, VanEck’s boss also said he doesn’t like the fact that Bitcoin currently has a high correlation with the Nasdaq index. He argues that people don’t want to include another risky asset in their portfolio.
“One of the things I don’t like about Bitcoin, as someone who has been watching Bitcoin for many years, is that Bitcoin has become so highly correlated to the Nasdaq that people don’t want it. They don’t need another risk-on asset in their portfolio just to hold Bitcoin,” he said.
VanEck’s boss points out that Bitcoin was once a “great” diversification tool. “I kind of hope that things go through cycles, Diane. I just hope that the cycles change a little bit and the correlation goes down,” he said.
