Last Monday, AllianceBernstein Asset Management sent out a memo that did not use subtlety to promote bitcoin as a superior currency over gold. “safe haven asset.”
AllianceBernstein (AB) analysts highlight that aside from Bitcoin’s inherent value stemming from its limited supply of 21 million coins — referred to as its “hard money properties” — the asset’s returns are undeniable.
“Since its inception, Bitcoin has consistently outperformed gold,” In a note dated Oct. 16, AB analysts stated that the following: “Over [the] last 3 years, Gold has been flat, while Bitcoin is up 150% (despite the 60% drawdown in 2022).”
They wrote that bitcoin has had 5 times the return on investment of gold over the past five years.
The note below was written before the recent bitcoin rally that began Sunday evening, when Bitcoin (BTC), was close to $30,000 at the time. The price peaked early on Tuesday at 35,100 before dropping to just below $34,000 by the time this note was published.
AB analysts pointed out also that bitcoin was a very young asset compared to the gold ETF, which began tracking its price in 2004.
The speculation of a potential ETF has actually been driving the price up for bitcoin at this moment. However, some observers believe that the current market action is premature, as ETF approval is dependent upon the US Securities and Exchange Commission. SEC’s slow response has delayed several spot bitcoin ETF requests throughout 2023.
Bitcoins biggest hurdle, according to AB is its lack of legitimacy “UX UI” problem. Analysts believe that the spot Bitcoin ETF can help to solve this problem.
“The inaccessibility of crypto wallets and the treacherous track record of exchanges, has made Bitcoin inaccessible to the mainstream. The Bitcoin ETF would make Bitcoin accessible in broker accounts, well integrated with private banks and wealth managers/advisors,” AB Analysts wrote.
Grayscale may win the race for a bitcoin ETF, since the SEC declined to appeal a ruling in August siding with Grayscale. The DC Court of Appeals ruled that the SEC was wrong to block the company’s Bitcoin Trust (GBTC), which is an ETF. “arbitrary and capricious.”
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