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- Bitcoin and gold share a limited supply, making them strong long-term stores of value.
- VanEck CEO warns Bitcoin’s growing Nasdaq correlation reduces diversification benefits.
- Holding both assets may offer stronger balance across market cycles.
VanEck CEO Jan van Eck says investors should strongly consider holding both Bitcoin and gold to achieve a well-balanced portfolio. His comments arrive at a time when correlations between major asset classes are shifting, prompting many investors to reassess their long-term strategies in an increasingly volatile macro environment.
Why Bitcoin and Gold Complement Each Other
According to van Eck, Bitcoin and gold share fundamental similarities that justify their coexistence in a diversified portfolio. Both assets have finite supply, a characteristic he believes is essential for preserving purchasing power over time. He noted that these assets play a similar role as stores of value, especially during periods of currency debasement or economic uncertainty.
The VanEck chief also highlighted his firm’s early involvement in crypto, recalling that VanEck was the first ETF sponsor to file for a Bitcoin ETF in 2017, when the cryptocurrency was still trading around $3,000. “Maybe I’m a crypto hippie,” he joked, reinforcing his long-standing belief in Bitcoin’s potential as a strategic asset.
Shifting Correlations Pose a Challenge
Despite his support for Bitcoin, van Eck expressed concern about the asset’s growing correlation with the Nasdaq index. He argues that investors are not looking for another high-beta risk asset when constructing portfolios aimed at long-term stability. Bitcoin, he said, once served as a “wonderful diversifier,” but has recently behaved more like a tech-linked instrument than a hedge.
Also Read: Bitwise Joins VanEck and Grayscale in Race to Launch Spot Avalanche (AVAX) ETF
He hopes future market cycles will help restore Bitcoin’s historical independence from equity markets, potentially reviving its appeal to risk-conscious investors.
A Balanced Approach for a Changing Market
Van Eck concludes that holding both gold and Bitcoin provides resilience across different market cycles. As macro conditions evolve and correlations shift, he believes these two limited-supply assets remain critical tools for maintaining long-term balance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
